Buena Vista may lose city hall to repo man

The country’s dire financial straits extend beyond homeowners, as one Virginia city’s officials are learning. In the go-go days of 2004 and 2005, the city of Buena Vista in the Shenandoah Valley borrowed $9 million to build and refinance a city golf course. On the refinance application, they offered up two public buildings as collateral: the Buena Vista city hall and its police station.

Now, the bills are coming due and the city can’t afford to make payments, making it quite possible that the financier, ACA Financial Guaranty Corp., will exercise its right to seize the buildings.

“They put up City Hall to finance the golf course,” says Bonnie France, a lawyer for ACA. “It’s collateral, so they could lose it. I’ve worked in public finance for 30 years and never seen this happen.”

Buena Vista isn’t alone.  Harrisburg, the state capital of Pennsylvania, is considering filing for bankruptcy, and Central Falls, R.I. turned its finances over to a receiver when it couldn’t repay its obligations.

Read more at WSJ.com.

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2 Responses to Buena Vista may lose city hall to repo man

  1. Lenn Harley says:

    This is hilarious. Why is a town building a golf course anyway?? If a golf course is to be profitable, private investors will pony up the capital. If it’s not profitable, it doesn’t need to be built.

    Sounds like Nanny should lose a job in Buena Vista.

  2. i agree, it’s very intresting idea to make a gold course, it’s certainly not profitable, but a golf course may be good for invite people for “golf tourism”. i’m not sure .

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