Also, somebody left two FC related links in a comment to this post. Have a look..
This link, for the excerpt below, and much additional reporting:
PNC Bank has committed to Flaherty and Collins $21 million to construct the apartment complex, which includes nine two-story rental townhomes.
[...] The HRA could issue a bond for the $6.5 million, which would total $7.31 million to cover the cost of issuance and 18 months of capitalized interest or $8.69 million, which would also include the $1.3 million TIF loan.
If the TIF loan would be included in the bond, then the funds would available for other projects, according to Kvilvang’s presentation.
The developer’s equity in the project would be $1 million and Flaherty and Collins would be required to put $3 million into the project to bring down the city’s debt, Kvilvang said.
If the temporary bonds are not paid off with permanent loan funding, a long-term bond can be issued in either the fourth or seventh year, she said.
While this project is controversial, Mayor Bob Ramsey said he does not see how the project could fail given the various scenarios.
If the subsidies were not involved, the HRA would be dancing in the streets because it was getting done, he said.
With the given scenarios, I do not see how the debt could reach the tax levy, Ramsey said.
“I… think it will be a big hit,” he said.
Even if the debt reaches the TIFs, it will impact the taxpayers, Tossey said.
The city has roads to take care of and if Flaherty and Collins’ projected debt reaches the TIFs, the city will not have the TIF funds for those projects, he said.
Strommen agreed, but she had other concerns.
If the project fails, it will tarnish the city’s image, she said.
[...] There would be a negative impact to the TIF if this project does not go forward as well, said HRA member Jeff Wise.
There would be tremendous loss to business opportunities by not doing this, said HRA member Colin McGlone.
With rents increasing, the city’s risk is limited, HRA Chairman David Elvig.
“It’s a measured risk,” he said.
Advantages
If Flaherty and Collins closes on Nov. 1 and starts to build in the spring, it could spur more development.
The Residence is considered as a catalyst for The COR project and there are a lot of groups watching what happens, Lazan said.
The project would also spur economic benefits, including construction jobs and the creation of spin-off jobs, said Nelson.
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| Ben Dover in foreground, Norman Castle across the street. |
My view, again the extravagant Norman Castle was touted as a catalyst. It failed to catalyze a thing. In the Cosmopolitan, an FC thing in downtown Indianapolis, housing is occupied but that failed to catalyze elevator-down-to-shop retail on the ground floor. Sorry Lazan, but that catalysis bunk failed with the Norman Castle and it failed with the Cosmopolitan, and your guess is not as good as mine while I neutrally expect no major personal cash flow impact whether it's built or not.
That is 21 million of bank loan money, 8 million of city risk money, and 1 million of promoter-capitalist capital at risk. Don't those people have any money? Don't they believe enough in their own adventure? What's up?
One thing is certain. Zygi would salivate if he could bend over things that way on his stadium; and probably would wet his pants if he could get 30-to-1 leverage AND dodge a referendum.
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More well written Sakry reporting about things related to Ramsey, a Sept. 1, item about the Northstar stop, no excerpt here so read the entire thing at ABC Newspapers, this link.
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REFERENDA REFLECTIONS: Reporting here and here, Zygi, like others, does not want a referendum because, like others, he knows his planning to use other peoples' money would be slammed to a thin layer, at the ballot boxes. Doesn't the will of the people mean anything to these people, beyond being something to be stifled when it cuts against the will of opinionated officials? Orland Park and Flaherty-Collins, Ramsey where I live, and Flaherty-Collins, Zygi, the bunch. You be the judge. Credible? Not so? Making a big-time mistake dodging a vote showing the will of the people? Stifling that? Good jdugment, in your view? Or bad?
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MORE REFERENDUM: Please do not be flabbergasted by this breaking surprise news - Zygi wants no referendum. It is official. He said so. Pohlad got a free ticket on his pork cutlet, which, to Zygi, means it must be the same for New Jersey guys. This MPR screenshot, (Zygi's the one with the sunglasses):
That one quote, "'We would like to be held on the same playing field as the Twins,' Wilf said," makes it sound like he is saying he wants to share Target Field with the Twins, as was done with the Dome. He should issue a clarification. Or, maybe he means that? What would YOU think of a child molesting priest, saying, "Now it's my turn"?