Vail Daily letter: No on 1A
Vail, CO Colorado
Minturn Town Council denied Resolu-tion 23. This was a resolution in support of the Energy Smart Loan. Minturn will not, as a council, support ballot issue 1A. I need to give Minturn council a big thank you.
I am against this Energy Smart loan idea, and I presented facts to council that the proponents could not and refuse to.
Example: Matt Scherr, of Eagle Valley Alliance for Sustainability, also on Minturn council and a proponent of 1A, was asked by another council member what the interest rate was. Matt guessed and said 2 percent.
I do research and present and argue facts, I do not guess. When someone makes things up and throws out false information, I have a habit of calling them on it, and I refuse to give them respect. The proponents of 1A keep saying, ” Look at Boulder,” so I did.
Boulder’s interest rate is 6.68 percent, fact, and according to Boulder will probably go up on this next round, fact. Boulder also takes a 16 percent to 20 percent closing cost fee, fact. I call that a loan shark. By the end of my presentation, Matt admitted to maybe 5.68 percent. How can anyone back and push for something when they do not know the facts? It can also go as high as 10 percent, according to 1A ballot language, fact.
According to Boulder, which the propo-nents of 1A want to mirror, a $ 50,000 loan will cost you $ 93,600, fact.
I will walk you through this.
A $50,000 dollar loan with about 16 per-cent in closing fees is now $ 57,972. At the 6.68 percent interest rate for a 15- year term, you now have a total loan amount of $ 93,600. Divide that by the 15- year term and you get an annual assessment of $ 6,240. Divide that by 12 months and you have $ 520 per month.
If you only have a $ 50 per month sav-ings on utilities, then this loan will cost you $ 470 per month. You need to have a utility savings of $ 520 per month to break even on the $ 93,600 loan. This Energy Smart Loan, 1A, will put you, the home-owner, more into debt if you opt in. That $ 50,000 loan will cost you an additional $ 43,600 in fees and interest.
My Web site, www. minturntimes. com, has the Boulder program’s fees and costs on it. All I did was copy and paste from Boulder’s Web site. I have the facts that Eagle Valley Alliance doesn’t want you to see.
You also cannot pay down the principal like a conventional loan. You either pay the annual assessment or pay the loan off in full, no partial payments. So, if you can afford to pay it off, you probably do not need it, and it forces the average home-owner into more debt by not being able to pay down the principal. I can go on about how paying one extra monthly payment every year can reduce a typical 30- year home loan to 17 or 20 years, but I am get-ting too involved.
Basically, Eagle County doesn’t want you to be able to pay this loan off early. They want the up to 10 percent interest and the 16 percent to 20 percent in loan fees from you. You are stuck with it for 15 years unless you pass on that hidden $93,000 lien to an unsuspecting buyer. This opens another can of worms.
Who is a good candidate for this loan?
According to Energy Smart Eagle, less-than- excellent credit people or people that lack equity in their home, for one.
In simple terms, high- risk people that conventional banks will not touch.
Why put the Eagle County taxpayers at risk? Whether directly or indirectly, the taxpayers are always the ones that pay.
Now, I will move onto jobs. The propo-nents of 1A say it will create jobs.
Sure it will, and the homeowner and the next homeowner that has to pay $ 43,600 in interest and fees on a $ 50,000 loan will be bailing out the construction industry.
Minturn can create more jobs than the Energy Smart Loan, and it will not cost the taxpayers or the homeowner one penny.
Lubert Adler owes Minturn $ 180 mil-lion to build a wastewater plant, recre-ation center, clean water plant, new infra-structure, etc. This is money being brought in from the outside. New money – that is how you help out the Eagle County economy.
Now Minturn council needs to pass a resolution to get that $ 180 million and also needs to give the Minturn citizens a tax refund on the false property valuation increase.
Vote no on the Energy Smart Loan or Ballot Issue 1A.
There are many more things wrong with 1A. If anybody needs more facts to make an informed vote, please contact me at email@example.com.
– Frank Lorenti, Minturn