Here is the LAO report. Their report assumes the deal is closed by the end of December.
http://www.lao.ca.gov/reports/2010/infr/sale_leaseback/sale_leaseback_110910.pdf
Toward the end, they go through a discussion of how DGS supposedly performed all sorts of due diligence to ensure the buyers “could meet the bid price with minimal risk.” So much for that. (It also talks about how DGS was exempt from following the normal process and operating with transparency.) I’ll be glad when the “Sunshine Governor” is out of office, despite the fact the new guy is probably worse.
Based on these criteria, California First LLC would have scored well given that it relies on 40 percent private equity and 60 percent financing from JP Morgan.
However, there's no explanation if the sources reflect Hines, who won't provide a dime, or Antartica.
Is the LAO also playing ostrich? Their analysis is, after all, limited to long term effects if the deal goes as planned.
All liberal treatises have a common profile; they're based on a big lie. In this case, the ability of private enterprise to produce the cash without significant concessions from the taxpayers.