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, i a. ' f l m SECTION F - ' SUNDAY, MARCH 29, 1998 The Palm Beach Post AC - - -SUNDAY T B s 1 a JKJKr Role of development board questioned Business Development Board "t, A comparison of revenues and expenses. 'We're giving the board a lot of money and we ought to be holding their feet to the fire,' County Commissioner Mary McCarty says. Expenses: $1.42 million 4 4 1 Training Misc. Entertainment Revenues: $1.43 million 6 7 less than 1 Advertising Events Interest, other 'i "r $53,513 $60,b ialry $78,608 $105,269 $8,238 8 Events - - I v An aerial view of the 11-acre estate on .the Intracoastal Waterway in Martin County purchased by Dexter Yager. $108,420 14 49 PR ads Salaries $196,415 '; $692,811 20 Operations . - ,.. $285,510 r 35 " , Member dues V ,", v , 1 $499,035 Y " ' V Grants $67,51 Business Enterprise, points to the group's minimum $500 dues as a reason for committing county resources to help small business. "They don't refer the people we're working with," Collins said. His office helps small businesses with 10 or less employees many in the Glades, Riviera Beach and Jupiter bid on county contracts and compete in the private sector. The rest of the commissioners stayed out of the argument. But soon they will be asked to define "small business" and whether growing local small business, not recruiting new ones, should be the Business Development Board's top public priority. The board's $1.6 million, two-year Please see B0ARD2F By Sanjay Bhatt Palm Beach Post Staff Writer WEST PALM BEACH Is the Business Development Board a club for rich, big businesses? That question was raised last week when Palm Beach County Commissioner Mary McCarty reacted with surprise to concerns that the board does not serve local small businesses. "We're giving (the board) a lot of money and we ought to be holding their feet to the fire," she said. Taxpayers pay for about half of the Business Development Board's $1.4 million budget. Charles Collins, director of the county's renamed Office of Small, MinorityWomen Includes $37,056 for depreciation. , Includes supplies ($19,989), telephone ($25,333), postage ($64 874) rent ($103,004), .auto allowance ($12 417), equipment ($10,860). insurance ($15,426), duesconferences ($5,259), meeting expenses ($8,184),and professional fees ($20,164). SOURCES: Audit by McGladrey & Pullen, CPAs; IRS Form 990 for Oct. 1, 1996 to Sept. 30, laaf SEAN TEVISStaff Artist ' Amway exec's $3.44 million bid wins estate i ! Amway's Dexter Yager got the gavel I last week. For $3.44 million, Yager out-j bid 10 others on Monday for River t Oaks, an 11-acre estate on the Intrac-! oastal Waterway in Martin County. - The property, which includes a f 12,500-square-foot furnished house, two guest houses, helicopter hangar (or, in T . -U.,U1.t DV rrirnrrcA When developers were going under in the recession of the early 1990s, Lennar Corp. was using Wall Street money to buy land at a furious pace. Now the company is rapidly filling that land with new homes. I ay ci s case, iiuuauiy an ivy gaiagwi f tpnnis court and ma Royal Palm Beach lllll - ! j i rina not to mention 700 feet fronting the St. Lucie River was auctioned by National Auction Group of Gasden, Ala. Although the house had been on the market for $4.9 million for more than a year, owner Farrell Jones and his Okeechobee Blvd r. I . Saddle Brook i 86t homes planned,. WEST I Ava I Van de Water ii ! Baywinds ! 1,100 age-restricted homes planned Real estate a. Hi Belyedere Rd.j ir 5 IN? Rubin property Under contract, 360 homes planned - Bink's Forest 664 home sites. Lennar built 264 in The Preserve and sold rest to other builders U3 a. Southern Blvd. o (El I Company land Land either developed it, by Lennar or sold to h other builders Wellington "! ti Projects under way . I; t A)r . Greenvlew Shores Blvd Undeveloped Lennar land Wellington Lakes 125 home Sites on Meadow Wood 55 half-acre lots. 45 available . Lakefield approximately 15 acres; 60 already The Hamptons: developed i iv . o vr . oil i i Qe&"er Blvd. Vl'oo0 I 441 j f . if i . , Pierson Rd. " i 1 100 homes Westbury: 101 homes; 7 available Waterford: 300 homes; 300 available Aero Club 78 acre-size lots; 12 available I Grand Isle 363 home 5-acre apartment : development sold in 1998 to Fairway Lakes of Greenview Inc. sites; 145 built in I wife, Brenda, decid- 1 ed they didn't want to wait any longer for the property to sell. After all, not all luxury properties ' sell quickly, even when they have a I whopping 700 feet along the Intracoast-J, al Waterway. With the kids grown, it J was time to travel, Jones said. While Yager got the property, he 'had some stiff competition, with bidders from Kentucky, New Jersey and ' Virginia. "We had 11 bidders with I $100,000 cashier's checks," said William Bone, president of National Auction Group. ' Auctioning of "trophy" properties is f more and more common these days, .especially when the auction is "abso-; lute," meaning the highest bid gets the ' property, no matter the amount. In j 1996, National Auction sold a ranch to ; Ross Perot for $575,000, and in November, the company auctioned Lloyd Bent- sen's family ranch, Arrowhead, in E McAllen, Texas for more than $6 (r million. I And when financial wizards such as I Perot and Bentsen former secretary ' of the Treasury and former chairman of the Senate Finance Committee buy and sell at auction, it puts other folks' i minds at ease, Bone said. "These things attract the rich and the famous. One reason they work so 'well is they (the wealthy) are used to "auctioning art and antiques. The trophy I properties fit right in," Bone said. "It ; makes real estate liquid. The buyers I are in a hurry, and the sellers are in a hurry." Besides River Oaks, the Joneses al-Iso auctioned off a lot they owned on the ; southeastern end of Point Manalapan in ;Palm Beach County. It sold Tuesday for $424,650. The buyer was Jackie Von Baillou who, via cell phone, shared the 'good news with her husband, Nicolaus, ; in London. The Von Baillous have a house in Boca Raton, but after spend- ' ing the past two years in London, they t decided they wanted a bigger place to ', live and lined up Tuscan Harvey I Homes to build their new home, t Among the 10 others bidding on the t Manalapan lot were builders Philip I Binns and Martin Carder of Clifton ! Homes (they would have built a spec home), and real estate broker Robert Long of Palermo-Long, who was bidding 1 for a client. j Von Baillou felt she got a good deal jon her lot and she may have. A ; house on the north end of the island where the water is narrower and the ! views are of condos across the way (in-' stead of the mangroves and mansions I view from Von Baillou 's lot), just sold ; for $330,000 and it's a tear-down, ; Long said. j Please see SOURCEJA' i JOB CLASSIFIEDS, 4F Lennar's growth 1954 Lennar formed when Leonard Miller invests $10,000 in F&R Builders, a Florida development partnership. 1971 Lennar goes public, with stock listed on the New York Stock Exchange. 1972 Lennar enters Arizona. 1987 Lennar buys out Hollywood, Fla.- based Development Corp. of America, its largest Florida competitor, and becomes Florida's No. 1 home-builder. 1991 Lennar enters the Texas market. 1992 Lennar forms joint venture with Morgan Stanley Real Estate Fund to buy out mortgage portfolios. 1994 Lennar buys first property in Palm Beach County's western communities. 1995 Lennar enters California market. 1997 Lennar merges with Pacific Greystone, a west coast developer, giving it Nevada property and making it the nation's 5th largest Oranse Point tract Approved for 1,500 homes li LINA LAWSONStaff Artist And the roots of all of them reach back to the recession of the early 1990s. Lennar, Florida's largest home builder with 1997 assets of more than $1 billion and profits of $77 million, saw opportunity in the devalued land it scraped up from bankrupt developers and failed banks. Working with Wall Street backers, Lennar bought mortgage loans and land, often paying little more than half its previous value. The company has amassed enough land to keep building in the western communities for the better part of a decade. Area builders, brokers and leaders would greet Lennar's mid-1990s foray into the western communities with apprehensive optimism. Lennar's land buys could jump-start the area's then-sluggish home sales industry. But it could significantly change it as well. It did both. Please see LENNAR' By Angie Francalancia Palm Beach Post Staff Writer Bf you're buying a new home in the western communities, odds are you're talking to Lennar. The huge home-building conglomerate is pulling projects from the ground in several sites around Royal Palm Beach and Wellington. And with massive land holdings and more on the way, Lennar Corp. is locking onto some of Palm Beach County's fastest-growing suburbs. Having built more than 600 homes in four west-area communities since 1994, and with land and plans for 2,071 more, Lennar will leave its mark. The company has four communities under way now in Wellington and Royal Palm Beach. By late summer, Lennar will be selling in a fifth community on Okeechobee Boulevard in West Palm Beach. 3 i STEPHANIE WELSHStaff Photographer Lennar Corp. has built more than 600 homes like this Saddle Brook model in the county's west since 1994. Former music exec aims for a piece of the rock repackaged and sold on compact disc or ers in exchange for rights to their future a COMING MONDAY INSIDEBUSINESS What businesses will do for senior citizens' dollars By David Bauder lie Associated Press NEW YORK Is it possible to put a monetary value on Hanky Panky? How about Louie Louie? Musical worth can be debated endlessly, and its financial value to banks and Wall Street is largely unexplored. Now, a former music industry executive is betting that there's more there than people think. Charles Koppelman, ex-chairman of KMI Capitol Music Group, started a cn-pany that plans to lend money to entertain re-recorded Dy a contemporary anisi. The former Beatles have earned millions in the past few years by releasing their leftovers in ibe Anthology projects. There's been a huge interest on the part of entertainers since his company. CAK Universal Credit Corp., was formed more than a month ago. Koppelman said. He expects the field to quickly become crowded. "There's no question that two years from today this is go jg to be coir.ion-: place," he said. earnings. His partner, iTudenual Securities, will provide a $200 million credit line. Prudential will then bundle several of these deals to sell to investors, in the hope that those who couldn't make it in a rock band would prefer rock bonds. Rock star David Bowie kindled Wall Street's interest last year when he raised $55 million through the sale of bonds tied to the earnings of his first 25 albums. An old song can earn monef for years, particularly if it is used in advertisements. Rock 'n' roll musicians can now invest in rock bonds, thanks to Charles Koppelman.