\GoBillsInDallas/ Posted November 9, 2019 Share Posted November 9, 2019 https://buffalonews.com/2019/11/08/pennies-on-the-dollar-the-tesla-plant-isnt-worth-nearly-what-the-state-paid-to-build-it/ Link to comment Share on other sites More sharing options...
Koko78 Posted November 9, 2019 Share Posted November 9, 2019 ...and this is yet another example of why the government owning the means of production - you know, socialism - doesn't work. However, it looks like the vast majority of the money went into environmental clean-up, which means that the land can be resold and reused quite easily, if this Tesla boondoggle fails. Link to comment Share on other sites More sharing options...
3rdnlng Posted November 9, 2019 Share Posted November 9, 2019 17 minutes ago, Koko78 said: ...and this is yet another example of why the government owning the means of production - you know, socialism - doesn't work. However, it looks like the vast majority of the money went into environmental clean-up, which means that the land can be resold and reused quite easily, if this Tesla boondoggle fails. Too few details to make a lot of sense of that article. What it would sell for on the open market is probably the most pertinent way to value it. The $1 annual rent would make it worth between $1-$2. What were the environmental clean up costs? Was NYS going to have to pay for that regardless? What's the replacement value, and was it built so it could be easily converted to other uses? Could the State sell it without incentives to the new buyer? How many companies want to relocate to NYS? The questions go on and on. Link to comment Share on other sites More sharing options...
Koko78 Posted November 9, 2019 Share Posted November 9, 2019 34 minutes ago, 3rdnlng said: Too few details to make a lot of sense of that article. What it would sell for on the open market is probably the most pertinent way to value it. The $1 annual rent would make it worth between $1-$2. What were the environmental clean up costs? Was NYS going to have to pay for that regardless? What's the replacement value, and was it built so it could be easily converted to other uses? Could the State sell it without incentives to the new buyer? How many companies want to relocate to NYS? The questions go on and on. I'd wager the bulk of the $680-or whatever million that was cited in the article for the property was cleanup. That ***** ain't cheap, especially if the old Republic Steel was dumping nasty chemicals into the ground. Really, the only thing that would be a real problem to resell is the specialized equipment that the state bought for Tesla. Buildings can be converted or modified, special equipment - not so much. Link to comment Share on other sites More sharing options...
3rdnlng Posted November 9, 2019 Share Posted November 9, 2019 30 minutes ago, Koko78 said: I'd wager the bulk of the $680-or whatever million that was cited in the article for the property was cleanup. That ***** ain't cheap, especially if the old Republic Steel was dumping nasty chemicals into the ground. Really, the only thing that would be a real problem to resell is the specialized equipment that the state bought for Tesla. Buildings can be converted or modified, special equipment - not so much. I think you are probably right about the real estate and I know you're right about the equipment. It's difficult to estimate the improvement costs without knowing the specifics of the construction/finished work but I have a hard time thinking the building and site improvements (excluding clean up) would even approach $100 million. That's a $100 a square foot which is somewhat in the neighborhood of home construction. I'm thinking that off the top of my head it's a horseshit article and the valuation probably follows what the actual construction cost was sans the cleanup. Link to comment Share on other sites More sharing options...
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