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(Some Guy)   City of Chesapeake begs company for 10 years for the right to Chesapeake.com. Company relents, gives domain name to City for free. Fark: City sells name for $120k   (content.hamptonroads.com) divider line 81
    More: Interesting  
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14611 clicks; posted to Main » on 26 Oct 2006 at 9:56 AM (8 years ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2006-10-26 08:40:06 AM  
Legal, I suppose, but wrong.

No real hope of being compensated, but if I were the guy that gave away the domain, I'd do everything I could to ruin the political careers of everyone involved.
 
2006-10-26 08:48:06 AM  
As for Aspen Technology, when Gunnufsen called to tell them about the offer, they reminded her the name had been a gift.

So I'm the first to notice that the original company is cool with the situation?
 
2006-10-26 08:53:12 AM  
AnthraxRipple: So I'm the first to notice that the original company is cool with the situation?

Chances are that because it was a "donation" the company lawyers found a really good tax loophole and saved themselves more than $120K. Just a hunch though.
 
2006-10-26 09:05:52 AM  
Good job Chesapeake, prevent any other city from getting their domain name back.
 
2006-10-26 09:21:40 AM  
There should be an "asshole" tag for stuff like this.
 
2006-10-26 09:26:03 AM  
Well, I guess that Necrobestiality, Ohio has it's work cut out for it at this point.
 
2006-10-26 09:45:13 AM  
See, that's pretty farked up. Not disagreeing that it was a gift, it's still unethical to beg for it for a decade, get it for free, and then turn right around and sell it. The person who had it gave it to the municipality with an expectation that it would be used by them. The site owner could have sold it, but gave it to them for free because of that. For them to turn around and sell it is bad enough, but that whole, "when Gunnufsen called to tell them about the offer, they reminded her the name had been a gift" comment just makes them look like assholes.

Good job City of Chesapeake, you suck.
 
2006-10-26 09:55:04 AM  
Good lord that's dick!

That was just poor form.
 
2006-10-26 10:02:01 AM  
I was hoping this would be a town other than Chesapeake, Virginia, but alas...

'Tis a pity, the people in that area actually have a level head on their shoulders.

/loves the Eastern Shore/Hampton Roads area.
//hates c*nts like these.
 
2006-10-26 10:03:09 AM  
img170.imageshack.us

You stay classy, Chesapeake.
 
2006-10-26 10:03:15 AM  
img129.imageshack.us

/hell.no is not impressed
 
2006-10-26 10:03:33 AM  
Well, with the city's website already in roation, they didn't need to change domain names. And its hard to change domain names without the whole forwarding mess. If someone came to me with $120,000.00 for a domain name, I'd sell it too.

Asshole tag is still needed though.
 
2006-10-26 10:04:56 AM  
oh yeah, potentially NSFW, if they've really got their panties in a bunch
 
2006-10-26 10:06:00 AM  
Why would a government subdivision like a city want a .com domain anyway?
 
2006-10-26 10:08:19 AM  
this is why you never give anything to the man.

/especially back east
 
2006-10-26 10:08:33 AM  
We here in the capital, Richmond, always knew that those in Chesapeake are foul and ill-mannered. For example, Chesapeake Bagle Company once hosted a bunch of bands and advertised up and down, offering half-price bagles during the concerts - yeah, they ran out of bagles inside 2 hours.
 
2006-10-26 10:08:42 AM  
Anyone notice Chesapeake looks somewhat like "Cheapskate"?
 
2006-10-26 10:10:14 AM  
I would have drawn up a contract restricting its use. Btw, cities get a domain already, I've never understood why a municipality would want a commercial domain.
 
2006-10-26 10:11:09 AM  
No good deed goes unpunished.
 
2006-10-26 10:12:50 AM  
Never trust the government.
 
2006-10-26 10:18:06 AM  
Kommissar: Chesapeake Bagle Company once hosted a bunch of bands and advertised up and down, offering half-price bagles during the concerts - yeah, they ran out of bagles inside 2 hours.


Those bastards! Aren't they from the DC area anyway? More of a big promises government style thing.
 
2006-10-26 10:18:23 AM  
I do think thats against the rules :)
 
2006-10-26 10:21:19 AM  
Riffington

Why would a government subdivision like a city want a .com domain anyway?

Promote tourism or other commercial activity?
 
2006-10-26 10:21:55 AM  
I would have to agree with the tax loophole. They all won.
 
2006-10-26 10:23:12 AM  
I could be wrong, but from the article, it sounds like the city called the company that gave them the name after the offer had been made, but before they accepted.
And in response, the company just reminded them that it was a gift.
So it doesn't sound like the company was outraged. I'm guessing they'll be able to claim a $120,000 donation on their taxes (hence the reminder that it was a "gift").

If I am wrong, then yes, that was a big asshole move by the city.
 
2006-10-26 10:24:25 AM  
local government officials everywhere become drooling idiots at the smell of cash.
 
2006-10-26 10:24:39 AM  
figures, i never did like chesapeake.
Lizz Gunnufsen | Public Communications Coordinator | 757-382-6241 (WK) | 757-679-9006 (Cellular)
/the water was too cold :P
//wuss
 
2006-10-26 10:25:08 AM  
They got took. Chesapeake would have paid a LOT more. They are buying up land in Oklahoma City like God ain't making it anymore. They have dropped like $50 mil on land. Their HQ has a 2 star dining room. They are have money coming out the wazoo. They would have gone $500k for that domain in a heartbeat.
 
2006-10-26 10:26:25 AM  
As for Aspen Technology, when Gunnufsen called to tell them about the offer, they reminded her the name had been a gift.

So I'm the first to notice that the original company is cool with the situation?


The article doesn't say that they are. I took it more as the lady called to tell them that Chesapeake had sold the domain, and they said, "hey, wait! That was a gift!" Closer to, "if we'd wanted it sold off, we would have marketed it ourselves".

It's like having volunteers come for a city cleanup day, then renting out their labor. Or maybe having your donations to the church blown at the casino. A gift is a gift, but it's not the purpose for which it was given. Pretty scummy.
 
2006-10-26 10:30:38 AM  
i.a.cnn.net

/does not approve
 
2006-10-26 10:30:39 AM  
Kommissar: For example, Chesapeake Bagle Company once hosted a bunch of bands and advertised up and down, offering half-price bagles during the concerts - yeah, they ran out of bagles inside 2 hours.


Oh, the humanity!
 
2006-10-26 10:30:45 AM  
guess Chesapeake will have to revert to:

clownpenis.fart.2
 
2006-10-26 10:33:38 AM  
Just explain to them that no good deed goes unpunished.
 
2006-10-26 10:41:34 AM  
120K for a good .com
Hmmm, should have asked for more.

/still pissed at network solutions for farking me over
 
2006-10-26 10:44:50 AM  
I'm not a tax attorney, but the company that originally gave the name could probably claim a 120k donation to a municipality on their taxes and use that transaction as prima-facie evidence that the domain is worth at least that much.
 
2006-10-26 10:45:12 AM  
In other news, abyschan got pwn3d BY A PROFILE!
 
2006-10-26 10:45:29 AM  
NightOwl
They are buying up land in Oklahoma City like God ain't making it anymore.

Um, last time I checked, God wasn't making it anymore ... at least not here.
 
2006-10-26 10:47:51 AM  
As for Aspen Technology, when Gunnufsen called to tell them about the offer, they reminded her the name had been a gift.

As in "We gave YOU this for free as a gift, if we wanted we could have sold it too?"

Am I the only one who thinks it's pretty rotten to take a gift someone gives you and turn around and pawn it off for as much as possible? I'm sure Aspen Tech could have used the $120k as well...

I suppose it could be worse though, it's not quite on a par with the cities that declare Eminent Domain for 'public use' on private property, then immediately sell off the land to private interests at firesale prices.
 
2006-10-26 10:49:56 AM  
vertigo32
I'm sure Aspen Tech could have used the $120k as well...

The $120K tax deduction is worth more to them than the cash, unless they're really, really cash-poor.
 
2006-10-26 10:51:08 AM  
Angry Drunk Bureaucrat: Chances are that because it was a "donation" the company lawyers found a really good tax loophole and saved themselves more than $120K. Just a hunch though.

I'm not a tax expert, but I think a tricky thing about non-cash donations is coming up with a fair market value for it. That's not a problem now because it looks like they've established the FMV as $120K.
 
2006-10-26 10:52:42 AM  
I live in Chesapeake. Good for us!
 
2006-10-26 10:53:15 AM  
Practice t&g @ Fentress OLF in Chesapeake & farmers get off their tractors to shake their fists as we land & take off. The Mayor of Chesapeake is a farmer. Bet they spend the free 120k on hookers & blow.
 
2006-10-26 10:56:03 AM  
Or something really shiney.

*Just kidding Chesapeakians, the Navy appreciates all your support.
 
2006-10-26 10:57:49 AM  
Just another reason I cannot wait to get out of money-hungry hampton roads

/Texas, here I come!
 
2006-10-26 11:01:25 AM  
vinnybang: /Texas, here I come!

Texas sucks!
 
2006-10-26 11:02:35 AM  
vinnybang: Just another reason I cannot wait to get out of money-hungry hampton roads

/Texas, here I come!



Are you in for a shock. Texas has some pretty nutty tax code. I think only CA beats them for screwy tax rules.
 
2006-10-26 11:08:59 AM  
vertigo32: I'm sure Aspen Tech could have used the $120k as well...

mozetti: The $120K tax deduction is worth more to them than the cash, unless they're really, really cash-poor.

Unless their tax rate is greater than 50%, that's absurd. (And if their tax rate is greater than 50%, that's absurd.)

Suppose their tax rate is 33%. If they sell the domain name themselves, they get $120K, then have to pay $40K in taxes, meaning that they're up $80K. If they donate the domain name and get a $120K tax deduction (meaning that $120K of their income is not taxable), they're up 33% of $120K, or $40K. So they get twice as much benefit by selling the domain name and paying the increased taxes.

(If they donated the domain name and got a $120K tax credit -- meaning "Take $120K off your final tax bill" -- they'd be better off. But charitable and government donations get you deductions, not credits.)
 
2006-10-26 11:11:27 AM  
/me is a resident of Chesapeake.
/me isn't a bit suprised about the douche baggery involved in this story.
 
2006-10-26 11:12:12 AM  
I actually, honestly and truly work for Aspentech. It shows what a great bunch of guys we are! It probably says something about our stock price, too. ;)
 
2006-10-26 11:12:44 AM  
Here's a secnario: Suppose the gift is not deductible for the company that bestowed it because the city is not a qualified charity. Now further suppose that the gift does qualify for the federal gift tax, which is paid by the donor. I have no idea what state and local laws might apply. Maybe the donor should have stipulated that the gift was for the use of the city only, and if they decided they no longer wanted it, the domain name would revert back to them.
 
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