Yesterday I received a stack of printout from the Travis County Appraisal District regarding the Circle C Child Development Center?’s property information for the last ten years from 1994 (first year) through 2003.

I discovered one item quite interesting and I wanted to share this information with you.

Year 1994
CDC acquired the land of 9.184 acres from the Developer, Phoenix Holdings Ltd., at the cost of $91,840.

Year 1995
The size of the land shrank to 3.521 acres up to this day. The market value and also the appraised value of the land were reduced to $35,210.

What does that mean?

That means CDC had paid $91,840 for a piece of land in the size of 9.184 acres, but ended up owning a piece of land of 3.521 acres which was only worth $35,210 in the Year 1995.

CDC and Circle C homeowners had been cheated of $56,630 ($91,840 ?– $35,210)

REVISION OF THE COST OF BUILDING THE FACILITY
$823,197 - $56,630 = $766,567

I called Travis Cad


I called Travis Cad to see what happened with the CDC land. I also refereed to a letter from Gray & Becker on 11/2003 to put together the following facts.

In 1994/95 Circle C Land Corp (Bradley/Bartlett), owned the original 9.184 acres. The land was then sold to Phoenix holdings (Bradley/Bartlett). A portion of the 9.184 acres, the 3.521 acres was then sold to Bradley's nonprofit Child Development Center. The balance of land, 5.663 acres is still with Phoenix Holdings (Bradley/Bartlett).

Phoenix Holdings also had the 10 year lease (until 2011) on the LaCrosse office spaces for $1,200.00 per year. This conflicting lease was signed by the other BOD's O'Reilly and Rigsbee. Bartlett's Phoenix then subleased the space to Denise Nordstrom & Circle C Landscape. When enough people complained about the $1200.00 per year lease with Bartlett's Phoenix, the 10 year lease was terminated. And, Bartlett then BOD, lost his reelection. I'm told there is now a CCHOA lease agreement with Denise Nordstrom and Circle C Landscape for about $4,000.00 a year.

Here is The Tricky Thing........


Phoenix Holdings Ltd. DID NOT sell 3.521 acres to CDC in the Year of 1994. It sold the whole piece of 9.184 acres to the CDC for the amount of $91,840. And then in the following year Phoenix Holdings took back 5.663 acres. If Gary Bradley and Steve Bartlett had refunded $56,630 back to CDC Endowment Fund, this would be an honest transaction.



Dear Mr. Bradley and Mr. Bartlett:

Have you ever refunded the difference of $56,630 back to CDC?’s Endowment Fund? If you haven?’t, why not? If yes, would you please show us the copy of the returned check and the bank statement?

Lisa

Letter to Mickey Giles, CPA


Lisa L. Sun
6709 Edwardson Cove
Austin, TX 78749
April 25, 2004


Mickey Giles, CPA
2304 Hancock Drive, #4
Austin, TX 78756

Re: CDC?’s Tax Returns 2000 - 2002

Dear Mr. Giles,

After reviewing the above tax returns, I am puzzled by one item on the Federal Depreciation Report For 4562 which was Building & Land 1/1/1994 $1,005,985.

Could you explain to me how did you come up with this amount of $1,005,985? According to the Travis County Appraisal District?’s record, the improvement/structure of the building was only $608,160 in the Year of 1994 which should also be the actual cost of the building.

Even with the land of 3.521 acres at the Market Value of $35,210, the total amount should be $643,370, way below your amount of $1,005,985.

And also, to my knowledge, land is not a depreciable item. Could you explain to me how did you come up with this amount of $1,005,985?

Thank you for your attention to this matter.

Sincerely,
Lisa Sun