The art of the (bad) deal, times three

The best part of the article the other day about textbook costs at St. Petersburg College was what they were fighting about. They were fighting about whether the textbook company had exceeded its allowed profit of …

Twenty-five percent.

A former bookstore manager at the college says the textbook company, Follett Higher Education Group, yes indeed, often made more than 25 percent, tacking on extra charges such as for shipping.

In reply, the company and the college insist strongly that No Procedures Were Violated, and so forth.

And I am thinking: 25 percent! What do I care if No Procedures Were Violated?

On top of that, they now have a deal with even better terms. Several other Florida schools have driven a harder bargain, according to the story by my colleague Meg Laughlin.

Another interesting aspect was that St. Petersburg College gets a piece of the textbook action. Laughlin writes:

In 2008, some of the money helped send SPC president (Carl) Kuttler, International Studies director Violetta Sweet and board of trustees chairman Deveron Gibbons to Russia, Italy and Puerto Rico.

Russia, Italy, Puerto Rico.

• • •

St. Petersburg taxpayers might get a warm feeling inside (although it's probably heartburn) from the recent story by my colleague Cristina Silva about the city's deal with a downtown hotel developer.

Classic St. Petersburg:

Out-of-town outfit promises glamor and ritz for the Burg. (Think Bay Plaza. Think 450-foot purple cruise ships.)

In this case, it was a four-star hotel. Four stars! With a classy piano bar. An upscale restaurant. A spa. Condominiums.

Just one little problem.

The developer couldn't actually pay full price for the city-owned lot. So the city ended up carrying the last $1.5 million. Sort of an IOU.

Oh, and one other little thing. The city did not retain an interest in the lot. If the company doesn't pay, the city doesn't get the land back.

Don't worry, the city said, the company will have to carry a letter of credit.

Except now the company is saying, uh, guys, about that letter of credit … sorry.

Oh, and one other little thing. The developer created a separate little company to do this deal with St. Petersburg, which could make it all the harder for the city to recover.

Did I say, one other little thing? Wait, there's one other little thing. The city also just found out that the company went out and got its own $6 million mortgage on the land anyway. …

But again, not to worry. Everybody remains "fully committed to the project." Which makes me feel better.

• • •

In Tallahassee, they're cooking up another mega deal with CSX for commuter rail in Central Florida, and maybe some dough for rail in South Florida, and so on. How much will taxpayers be on the hook, especially on the question of waiving CSX's legal liability?

This is a major decision that creates "a comprehensive, statewide rail transit policy" and some outfit called the "Florida Rail Enterprise" — which is why, of course, we have to decide right now.

Members of the Legislature got their first look at the details on Monday.

They are summoned to Tallahassee to rubber-stamp the whole deal on Thursday. Plenty of time.