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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (176432)	1/7/2004 2:00:04 PM
From: Charles Tutt	Respond to of 186894

Well, perhaps it's becoming moot: timesofindia.indiatimes.com JMHO. Charles Tutt (SM)

To: Lizzie Tudor who wrote (176432)	1/7/2004 4:43:44 PM
From: Bill Martin	Read Replies (1) \| Respond to of 186894

Re: ...huge windfall in property value escalation and frozen tax rates... In my limited experience, corporate real estate taxes in SV are largely over stated. Every time some rearrangement gets done on the Intel factory floor for example, they need to get a building permit, and the property basis is adjusted upward by that full amount of the work on the permit. This is quite a scam for the local government since the real estate property isn't generally that much more valuable as a result of moving some machine. You rearrange the factory floor or cubicle areas 10 times over the years and you're looking at a huge artificial increase in valuation. There are people who specialize in going to argue with the county over corporate property valuations for a cut of the savings specifically because the tax basis gets pumped up so artificially high otherwise. Bill

To: Lizzie Tudor who wrote (176432)	1/7/2004 6:27:08 PM
From: Saturn V	Read Replies (2) \| Respond to of 186894

Ref because the tech companies who owned property at the time, Intel being one of the largest property owners in SV, reaped a huge windfall in property value escalation and frozen tax rates. HP is another one, through their acquisition of Tandem Computers especially, own a huge RE portfolio in SV. These firms never sell their properties they lease them for exhorbinant rates to the next new company be it Google or whoever. Google and any 90s firm pays through the nose, Intel and HP just sit there and watch the money flow in, Armchair speculation ! The proposition 13 was passed in 1980. So the benefits of Prop 13 only apply to California properties built in the seventies. Do you know what fraction of Intel California square footage was constructed prior to 1980 ? The number is probably only around 15%. The entire Folsom site, and the Mission Rd complex were built well after 1980. Most of the California construction happened in the 90's. Intel funded its development by profits from Memory chips in the 70's, and subsequently by profits from Microprocessors; not by being a slum lord as you think. You seem to think that Intel success was undeserved and you are inventing reasons for this "undeserved success". Intel had a few lucky breaks like being a pioneer in the semiconductor memory market,by inventing the microprocessor, and by getting IBM to design in the 8088 in the IBM PC. Other companies had similar breaks too, but Intel prospered greatly due to its outstanding execution.