I'm torn on the issue myself, but by any reasonable calculation that deal is for far, far less than the $35 million that even the city thinks it's worth. It's all about the discount rate, which is in turn all about the state's cost of capital. The 12-month average interest rate on state 20-year general obligation bonds is 3.87%. If you used that as the discount rate, the deal is worth $17.3 million, or just half of the appraised value.
Indy Week • 201 W. Main St., Suite 101, Durham, NC 27701 • phone 919-286-1972 • fax 919-286-4274
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