Here’s “One for The Books”… City of Victorville about to loose $100,000,000.00

With a lot of concern and a little amusement (really a lot) I read through a front page news paper article this morning about The City of Victorville about to loose $100,000,000.00 dollars (100 million) in a city owned utility project… gone bad due to the economic downturn.  The City of Victorville entered into a contract with General Electric to purchase $126 million in equipment for an electrical power plant, with a $50 million dollar deposit and to date $50 million in development fees.  My concern, of course, was for the welfare of the city and the tax payers who will have to bare the expense if it cannot be resolved. 

As a Real Estate Broker the real amusement came when I read the part about General Electric’s response to the cities request for an extension…”They could not even look an extension until the deadline passed”

Wow, that sounds like what hundreds of thousands of homeowners have been told in the last year.  Lets see, how does this work?...  be late on your payment, get your credit rating reduced, and then we can charge you more interest or better yet, deny your request and foreclose on you.  In all fairness GE has given the city 4 previous extensions.  But then, if I where GE, would I want to be writing off $126,000,000.00 in this economic climate?

Here’s “One for the Books: Like most American’s today I have lots I’d like to say about the economy and what’s going on.  Here’s “One for the Books” is a weekly article focusing on real estate related article about industry changes, blunders, screw ups and unbelievable actions all worth a laugh or just a shaking of your head. Check in weekly for the latest news/opinions.  If you have “One for the Books” be sure and let us know so we can publish it for you.

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