Did you know that $20,000 is .000465116279% of $43 million?
Skin tight, Kevin. Skin tight.
River View gets a new option; Deal would extend to 2014, requires $20K and signs of progress at site, by Daniel Suddeath (News and Tribune)
... New Albany City Councilman Kevin Zurschmiede, who is also on the redevelopment commission, said he’s voiced concerns in recent months that Mainland Properties and its head, Jack Bobo, should put “more skin into the game” in order to retain the option on the real estate.
“It sounds like the developer has heard those concerns, and is willing to step up to the plate,” Zurschmiede said.
Bobo was present with other members of the Mainland Properties team to provide the commission with an update on the estimated $43 million project, and agreed to the terms set forth by Zurschmiede and the commission.
This seems to demonstrate how shaky this deal really is - if the project were an up-front, profitable deal, many companies would be in line, bidding much higher dollars. Why no competition?
ReplyDelete$ 20,000 for $ 43,000,000? If it really is a glittering opportunity, wouldn't another business offer $ 30,000?
What's really shocking is the fact the city would "park" a $ 43 million project for just $ 1,000 for so long. Not that $ 20,000 is really any better.
I hope River View goes like gangbusters the first year or two. That way, we'll all have time to sell our houses to unsuspecting dupes before they declare bankruptcy.
ReplyDeletew&la, River View will pay 1,000,000 for the property if the option is acted upon. 1,000,000 is what the property originally appraised for and R.V. agreed to pay. The option to buy initially cost 1,000. If R.V. wants a fourth option they have to put down an additional 20,000 that would be credited to the 1,000,000 if the option is exercised.
ReplyDeleteTwo things that was mentioned in the meeting that wasn't covered in the article was the Horizon Group's purchase of the adjoining property, which people seem to have forgotten about, and should be just as repugnant to people opposing R.V.
And the other thing, Mr. Bobo publicly stated one of his main investors by name. A Group out of Louisville who wanted to remain unknown until the deal was further along. He mentioned them by name but I can't remember offhand who they were.
It’s not unusual for projects of this size to take time. Giving R.V. time to come up with something isn't costing the city anything. If someone else has a suggestion for the property's use I would love to hear it, but the only thing I’ve heard so far came from Mr. Gonder during a council meeting and his suggestion was to move the library there. R.V. has a better chance of happening than the library move.
Why would someone else plan for that property? RV has already had it "tied up" for a couple years for basically nothing and now has another 2 years for just a little more than nothing.
ReplyDeleteIt's important to remember as well that the option isn't to build River View or not. It's to buy the property or not. Once they own it, they could do nothing, sell it to someone else, or do something totally different with it.
ReplyDeleteAllowing someone else that sort of control of such an important piece of public land isn't good for the city.
With Kopp out in Vegas, he could be shopping the property to anyone. If they're willing to pay even just a little more than the previously agreed upon price, he can sell it to them, regardless of what they want to build, and walk away with a tidy profit at our expense.