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The shotgun clause has its problems even in contracts among equals. Those are even more relevant here. Specifically, this would link a town's ability to raise
by matt4077 8y ago
The shotgun clause has its problems even in contracts among equals. Those are even more relevant here.
Specifically, this would link a town's ability to raise taxes dependent on its existing financial situation: A poor town that would run into difficulty obtaining financing for multi-million $ purchases could easily be scared into undervaluing properties, further weakening its financial position.
While they could (in theory) flip the property and earn money, the market for large retail properties would seem to be at the rather illiquid end of the spectrum. And even with good prospects of selling, I wouldn't want to be the small-town mayor (who are, I believe, usually unpaid) suddenly shouldered with the responsibility for such a transaction.