Posted by Bob Smith on February 24, 2007 at 10:52:34:
Why didn’t the tax authorities name the lessee to wipe them out during foreclosure, forcing them to pay the taxes? If you can’t do that I can imagine plenty of angry property owners stiffing the city by giving a friend a 30 year lease for a dollar and then not paying their taxes. I also don’t understand your musings about renewal. If the lease expires in 30 years, why are you wondering whether ATT would renew it?
Posted by David Krulac on February 24, 2007 at 18:21:16:
because it was a non-judicial sale and the liens/and or leases are not wiped out and carry forward to the new owner. I never thought it was a deal let alone a good deal, what was trying to say why I didn’t think it was a good deal. ATT did pay their rent in advance for 30 years, I’m sure at market rent.
As to renting to your friend for a dollar, it does seem like that would stand up in court under many legal principals including fraud and undue enrichment. The ATT lease is neither a ruse or a fraud.