View Single Post
Old Posted Oct 9, 2013, 12:25 AM
Cro Burnham's Avatar
Cro Burnham Cro Burnham is offline
Registered User
Join Date: Jun 2005
Location: delco
Posts: 2,396
Originally Posted by blenfest View Post
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.
ok, you got me, i was being unduly obnoxiously snarky, as is my habit, and sounded like a dick. my apologies. the JV comment was particularly stupid and i hereby withdraw it. my ass has been appropriately smacked.

what's the other $42 million? you are seeking a $33 million hud108 loan to be repaid by the TIF? or,in addition to the TIF, a separate hud108 subordinate loan not collateralized by the TIF?

if the hud108 is subordinate to $100MM plus million in senior debt and not secured by the TIF cash flow, the city is seriously going out on a limb. If I recall correctly, for example, the city had to take a major haircut with a similar structure at the Ritz.

where is the remaining $9 million coming from?
Reply With Quote