So, just how does one turn $40 into $400,000? The answer — do business with the City of Rochester, New York.
In the continuing saga known as the Fast Ferry business venture, which went down about as fast as the Titanic on open water, Maplestar, the company that ran the business into the ground and cost Rochester and New York State taxpayers millions of dollars, made yet another sweetheart of a deal with Rochester this week. Initially when the failed ferry service between Rochester, New York and Toronto, Ontario Canada got underway, Maplestar signed what everyone called a sweetheart of a deal with the city of Rochester. Take possession of the terminal at the Port of Rochester, have no costs for upkeep as Rochester will take care of all of that, and pay just a dollar a year, for 40 years. Wow! What a deal! A brand new building, no upkeep costs, and pay just a buck a year. Oh yes, Maplestar also collected any and all income from the terminal. In other words, Rochester reaped absolutly no financial benefit from the terminal!
When the ferry service went under, Maplestar held onto the lease. Once again, that’s pretty cool. Be the company that cost the City of Rochester millions of dollars, lose the fast ferry, but still keep the terminal for just a buck a year. This week that all changed though as the City of Rochester has taken possession of the terminal. How did they do this? They agreed to pay out the lease agreement with Maplestar. Now it doesn’t take a math genius to figure out if you’re going to buy out a lease deal that’s set at a dollar a year for 40 years, that means the buyout should be around $40. Right? Isn’t that how the math works?
Apparently not in Rochester!
Instead, the City of Rochester, which means the taxpayers of Rochester, will pay Maplestar $400,000 to get the lease and the building back. Wow! $40 dollars has turned into $400 thousand dollars!
It must be that new math.
Just my two cents,