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Old Posted Oct 7, 2013, 10:07 PM
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Cro Burnham Cro Burnham is offline
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Join Date: Jun 2005
Location: delco
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Quote:
Originally Posted by summersm343 View Post
News on the W
$75MM in additional grant subsidies beyond a TIF for the W?

Not a chance. In the best of times, that wouldn't happen, particularly with a hotel. Now that schools are broke, noone wants to pay to fix it, and these idiots people think they are going to get $75 million? Right.

I think Brooke Lenfest must not have a clue about real estate. He seems just to be an open cash register for high price lawyers, architects, and failed development partners. Reminds me a bit of the rich kid with Mandeville Place: trying to compete in the big leagues with a JV team pedigree. I wish a real developer would get hold of that site.

That site will go through many more iterations before anything happens.

OK, I am a putz. I got called out. Striked-out lines are ignorant to have posted.

"blenfest" - presumably Brook Lenfest, the developer - has posted per below that the $75 million public participation includes (i.e., is not in addition to as implied by Kostelni) the $33 million TIF and implies that the city will also be providing a federal HUD108 loan. HUD108 loans can be substantial and, like TIFs, are not money directly from City funds (funds come via HUD bond issues). They are mortgage loans, usually subordinate, that must be repaid - a default would hit the City's community development budget big time. To clarify (better late than never), I meant to suggest that there was no way the hotel project would receive $75 million in City or Commonwealth grant funds - free money, that is, like RACP funds, etc. That much, at least, is probably true. My writing, however, was imprecise and I stand corrected. According to blenfest, it would appear the project isn't getting grants and the $75 million includes the TIF. It would appear, then based on what he wrote, that the City is providing a large subordinate second mortgage HUD108 loan. That is a pretty risky proposition for the City, if you ask me. But nobody's asking me, obviously.

In any event, I am duly chastened. My apologies to Mr. Lenfest for being a jackass .

Last edited by Cro Burnham; Oct 9, 2013 at 2:29 AM. Reason: for being a dick
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