Sunday, January 05, 2014

Lynda Bell Again: Lawsuit? By Geniusofdespair

The mixed use project by Developer Asi Cymbal for Design 41 has a lawsuit between him and his partner.  They were waiting for EB5 immigration funding that never panned out for this design district project. This is same program that failed relative to Margretaville project in Hollywood.

A while back Lynda Bell wrote a letter urging the Beacon Council to support Miami's proposal to become a sponsor. Beacon, under former director Nero,  was reluctant to become a sponsor for fear of liability to the this lawsuit.

From EB5 Website:

USCIS approval of an EB-5 Regional Center application does not in any way:
  • Constitute USCIS endorsement of the activities of that Regional Center;
  • Guarantee compliance with U.S. securities laws; or
  • Minimize or eliminate risk to the investor.

Cymbal is in court against the EB5 partner.

The EB5 Program according to the Beacon USCIS:

The Immigrant Investor Program, also known as “EB-5,” was created by Congress in 1990 to stimulate the U.S. economy through job creation and capital investment by immigrant investors by creating a new commercial enterprise or investing in a troubled business. There are 10,000 EB-5 immigrant visas available annually. In 1992 and regularly reauthorized since then, 3,000 EB-5 visas are also set aside for investors in Regional Centers designated by USCIS based on proposals for promoting economic growth.

There are two distinct EB-5 pathways for an immigrant investor to gain lawful permanent residence for themselves and their immediate family—the Basic Program and the Regional Center Pilot Program. Both programs require that the immigrant make a capital investment of either $500,000 or $1,000,000 (depending on whether the investment is in a Targeted Employment Area [TEA] or not) in a new commercial enterprise located within the United States. TEA is defined by law as “a rural area or an area that has experienced high unemployment of at least 150 percent of the national average.”
More from the Beacon USCIS:

A Regional Center is defined as any economic unit, public or private, which is involved with the promotion of economic growth, improved regional productivity, job creation, and increased domestic capital investment. The organizers of a regional center seeking the regional center designation from USCIS must submit a proposal showing:

  • How the regional center plans to focus on a geographical region within the United States, and must explain how the regional center will achieve economic growth within this regional area;
  • That the regional center’s business plan can be relied upon as a viable business model stating market conditions, project costs, and activity timelines;
  • How in verifiable detail (using economic models in some instances) jobs will be created directly or indirectly through capital investments made in accordance with the regional center’s business plan;
  • The amount and source of capital committed to the project and the promotional efforts made and planned for the business project.


Youbetcha' said...

Between the "scholarship" pass-through funding given to trade schools and colleges, pre-K funding to unsuitable "kindergartens", not producing charter schools, seniors/infirm housed in substandard group homes and now foreign nationals trying to scam their way into our citizenship through "programs" the public has no defense against thievery of government funds. I really wish we could regain the ethic of working for what you get and using programs only for emergencies.

Each school year, teachers buy their own teaching materials, students are required to bring tissues, paper towels, soap and copy paper to help cover the school budget. The schools are roachy, the bathrooms sour and the kids snotty. Is that what we pay our taxes for?

Where are the elected officials that will look beyond their fenced in yards and seriously address the ills of our streets, communities, states and nation?

Anonymous said...

This site is always no negative, let's look at what we excel.

We pay our deputy mayors and county attorneys more than the federal government pays the white house chief of staff and most county department managers far out earn the $175,000/ yr we pay the member of congress.

Heck a lowly fire chief out earns congress and I think we have almost as many MDFR chiefs as congress has senators.

So we may in the top 25 for crime, fraud, waste, public corruption housing foreclosures and unemployment but we pay top dollar to those responsible!

Anonymous said...

There is more to Asi Cymbals Design 41 projects work stoppage. Why would the dude start construction without having all his money "in hand"? Why didn't he get a bank loan or mezzanine financing? Does he have any tenants
? Doesn't the dude have a history of just "flipping" deals? Did he piss off Craig Robins?