Monday, April 11, 2016
“HE’S NOT MAKING ANY MONEY OFF THIS DEAL IN ANY WAY SHAPE OR FORM” Miss Fortune Analyzes Grand Traverse Academy Superintendent's Claim; How Much Money Could Mark Noss And His Partners Make? (Hint: Lots!)
Miss Fortune has determined that Mark Noss, and his MDN Development partners, could make a seven-figure return on the construction, rental and February 1, 2019 sale of the new Grand Traverse Academy expansion.
And if the school cannot scrape together the money to pay the $3.9 million dollar asking price at that one-time, one-time only, February 1, 2019 date, it will pay an estimated $8.5 million dollars in monthly payments over the lease's 20-year term.
So was the "school project" described by Brad Habermehl in a series of fundraising emails really a plan to privately fund the Grand Traverse Academy expansion?
Who else was solicited to lend or invest money, and who approached them?
In addition to Habermehl, Ingersoll and Bruce Harger, who really were the other two investors poised to invest money?
While we still don't know the private financial details behind the Grand Traverse Academy's expansion, in a holding pattern while it waits for the Michigan Department of Construction Codes to issue a building permit, Miss Fortune has a building permit that could reveal the new building's current construction budget.
Using the nationally-recognized Turner Construction Company's cost index, which measures cost increases/decreases in the non-residential building construction market in the United States, and the proposed building's 2005 building permit cost, I was able to roughly calculate Comstock Construction's original budget and the company's likely 2015 cost estimate.
Here's a dirty little secret: Michigan's building permit fee schedule allows you to determine the building cost by the permit fee.
The fee for the 2005 permit pulled by Comstock Construction on behalf of the Grand Traverse Academy for a 27,910 square foot building (shown at left) was $5,299.
I obtained the permit directly from Michigan's Department of Construction Codes via a Freedom of Information Act request.
Using the fee amount, and Michigan's Building Permit Fee schedule, I estimate the construction cost for 2005 was $1,850,000.
Utilizing the Turner cost index percentage increase/decrease construction industry data, the Grand Traverse Academy's 2015 expansion estimate comes in just under $2.5 million dollars — or $1.4 million dollars less than the agreed upon $3.9 million dollar purchase price.
Although I requested detailed financial information about the expansion from the Grand Traverse Academy board in a recent Freedom of Information Act, my request was denied.
Instead, I was told the information, including “building bid specifications/package, all bids received, project budgets” and “final budget and construction schedule”, were not public records.
I'd put my "personal assets" on the line and take a risk if my reward included seven figures, especially with the taxpayers on the hook for making those payments.
So tell me again how Noss and his MDN Development, with a projected construction budget of $2.5 million, won't make be making money from this deal if he sells the building for $3.9 million.
Better yet, show me where the money came from, where it's going, and who will profit.
Until then, keep your PR platitudes to yourself!