butterbean
Joined: 21 Jun 2006
Posts: 2271
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 Posted: Mon Nov 13, 2006 1:43 pm Post subject: Government shells out $1.8 mil. to private Southside golf co |
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Government shells out $1.8 mil. to private Southside golf course
USDA backed the loan when Whitewater Country Club owner defaulted
With its grand clubhouse and 18-hole course that Arnold Palmer helped design, the former Whitewater Country Club near Peachtree City didn't seem to be the kind of project that would need help from the federal government.
Yet when a businessman wanted to revive the struggling club, the U.S. Department of Agriculture, through its Rural Development branch, agreed to guarantee 90 percent of his $6 million loan.
John Boykin couldn't make a go of the club. Documents show he was unpopular with homeowners.
THE PROGRAM: The U.S. Department of Agriculture's Rural Development branch makes loan guarantees to build "essential community facilities," such as schools and fire stations. Sometimes, golf courses qualify.
THE BORROWER: Roswell resident John Boykin, who has spent his entire career in golf, wanted to buy the Whitewater Country Club in Fayette County but couldn't get a loan without the government's help. Less than a year after getting the loan, Boykin defaulted.
THE LOSERS: Taxpayers. The USDA reimbursed the note holders, losing $1.8 million — one of the largest losses in the program's history.
The turnaround plan flopped — leaving taxpayers on the hook.
The federal government lost $1.8 million after making good on its guarantee and reimbursing a local bank and four other note holders.
The government closed the book on the sour deal in September, marking the fourth-largest loss in the loan program's 16-year history.
What was the USDA doing helping a golf course in a Southside enclave where some homes top $1 million?
Just following the rules.
Loans guaranteed by the USDA are earmarked for "essential community facilities," such as nursing homes, schools, hospitals and community centers, according to the agency's literature. A "success story" on its Web site describes a clinic built for Eskimos living above the Arctic Circle.
continued:
http://www.ajc.com/news/content/metro/fayette/stories/2006/11/12/1113metgolf.html |
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Andy51
Joined: 05 Jul 2006
Posts: 199
Location: Washington state
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| Posted: Mon Nov 13, 2006 2:14 pm Post subject: |
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Yep, that's the way to spend taxpayers dollars! 
We need to get rid of such idiotic waste, and get rid of whoever gave the money our for this project! There is no way in the world that taxpayer dollars should have been used to help with this golf course. It's just another sign of how messed up things are in D.C.
Take care.
Andy: |
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