Quote:
Originally Posted by Cro Burnham
$75MM in additional 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 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.
|
Shucks, I guess I'm just doing the best I can with my JV team pedigree. Maybe you could school me on RE development in your spare time between posting.
The $75M includes the $33M TIF.
The abatement is worth maybe $14M not factoring in a discount rate since its value is spread over 10 years.
Much of the so called subsidies like the HUD 108 are repaid with interest.
The hotel will provide $12.3M to the District in excess of what the parking lot would pay and an additional $25.8M to the city. The hotel will not get built without the TIF.
The TIF is the last piece in the capital stack. All other sources of the budget have been secured.
The hotel has already brought future convention business to Philadelphia that made it clear that they would not be coming to Philadelphia if the hotel weren't coming.
Besides the additional taxes mentioned above and the windfall at the end of the TIF period for the City and District there is the incalculable benefit of the additional conventions that will come to Philadelphia and the money those out of town guests will spend. In addition there are the 1,800 construction jobs and 450 permanent jobs.
Maybe if you have 5 seconds or so you can come up with lots of alternatives more worthy of support.