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T2x

Given that our tax dollars are used to fund everything from art made of feces, tax breaks for exporting bio-diesel, government funding of Jesse Jackson's pet projects, and handouts to anti American countries....... at least this is something in favor of capitalism.....

T2x

Ratickle

My only question, (and I thought I knew everything), is how do you keep the two seperate for income/tax purposes if they are in the same facility? It seems smart, considering what he paid and the product line/dealership network, to purchase it. But it would seem not so smart to roll it into your existing company vs keeping it seperate just in case of continuing losses/potential bankruptcy. The boat economy isn't real good right now, hence the cheap price for the assets/name. What am I missing here?

Ratickle

I agree, and if they could have found a way to ship boats cheap from China, they would probably be gone already. Personnaly, I don't want them to fail. I used to really like Reggie when his sales pitch was he personally tested every boat and was building the company. Somewhere along the way it went wrong on the ego I think. I still think a couple of the models they build and sell are the best available, the 42' is an incredible boat. We need to keep every manufacturing business possible running here.

T2x

Yeah, when he was about 10.

T2x

seafordguy

I don't disagree with you - there is no doubt our tax dollars are squandered in every way possible, but to the average low to middle income family this isn't going to sit well using tax money to bail out a company whose entire existence is based on sales of something as overindulgent as offshore powerboats.... Boats whose half-million dollar price tag is probably 5 times the mean house price throughout much of N.C.

Coolerman

I hope the people who are making these transactions aren't as stupid as the person who wrote the article on the front page of OSO. Anyways, I wish Fountain Powerboat Industries the best in their new venture of building high performance "oats."

Big Time

Not sure, I would have to really research the relationship between Fountain and Baja...does anyone know if Fountain is the parent company of Baja?

In my business I trade in and out of positions in a number of different legal entities (which report seperate P&L) even though I work for one company, so I don't think what he is doing is that uncommon.

blkbullitt

I normally steer clear of these topics, but decided to open my big mouth.

Why does it matter what the new jobs are for? I mean, they are jobs, right? If you were unemployed prior to this, but employed after, would you really care if you were building expensive play toys for the rich? I'd just be happy to have a job.

I feel bad for the Baja employees in OH. But, getting angry at Reggie for getting a grant is pretty petty. Maybe get mad at the previous management of Baja for not getting a grant from OH, or get mad at the state of OH for not granting the monies like NC did. But don't blame Reggie, he's pulling out all of the stops to stay solvent.

His reasoning for moving the jobs to NC makes perfect economic sense to me. I mean, he gets to spread overhead over both operations, it's just more efficient. Again, having been through this myself, I feel bad for the individuals affected in OH.

With all that said, this grant is a band-aid. Reggie's banking on this economy turning around fairly soon. If it doesn't, I think doors will close at Fountain/Baja and lots of other places as well.

wananewboat

I hire people and never get a grant. It always seems that I have to pay more. These grants are for the birds, it is still tax money from everyone being used for stupid things.

We have a sheriff's department in my town and the guy is always getting grants. He has a mobile command center bus, armored assault vehicle and now a boat that I have not seen yet, but I hear it is very nice. Remember our sheriff's in MA have no law enforcement capability, they only guard prisoners. With Homeland Security he can get things that other sheriff's departments get. The only water is a small pond near the prison. The cops in Boston Harbor are pissed, because they needed a boat and he got it with a grant.