--- In AsburyPark@yahoogroups.com, "dfsavgny" <[EMAIL PROTECTED]> wrote:
>
> Didn't someone (Aaron?) say at the Dec 15 meeting that the Casino
> would require $30+ million in environmental remediation? Have you
> ever seen an expert report estimating these costs?
There is no documentation, that I am aware of, regarding costs.
However a figure like that is not unthinkable if built to the
National Standards. Copper, cast stone, brick, life/safely upgrades,
etc.
> I think you contested that figure saying that it was basically a
> shell with a roof. All you really have to do is clean it up and
> put a new roof. I am sure that the environmental problem is pigeon
> droppings (no kidding).
My analysis was comparing their intended build out of a three level
shopping mall with restoration as a general purpose
entertainment/recreation venue. The internal infrastructure and
reconfiguration costs needed for a mall would be very high compared
to an open amphitheater (which it is designed as). Yes, its just a
deck, shell and roof.
The main hazards are pigeon droppings and asbestos in the plaster
finishes. The Heating Plant asbestos and fuel oil have already been
cleaned out, although it did appear that the asbsetos part was done
on the sly.
> Even if it cost $100 million, that's too bad, APartners knew what
> it was getting into.
Buyer beware, due diligence, etc. The logic given by the council at
the time was that the beachfront is being sold cheap due to the
enourmous cost of restoration and infrastructure replacement.
> Let's look at the minimum potential revenues APartners
> gets. They are selling the parcels to subdevelopers for around
> $36,000 per unit. Figure 3,100 units and that's over $110 million.
> They are getting fully reimbursed for the infrastructure so that's
> no net expense. Then they are getting 5% of gross sales. 3,100
units
> at an average price of $400,000 (very low but perhaps a wash with
> present value discounting) is another $62 million.
The most recent number I have heard is $(50-85)K per unit.
Acquisition and settlement of the redevelopment rights cost them
about $25M initially. They will net $(200-300)M on that initial cash
outlay just in flipping development rights. Subtract from that the
$7.5M commited to the City for housing/community programs.
Lets not forget that they can also sell individual pavilion parcels
having purchased all of them for $3.5M. What would they go for, $1-3M
each?
> We haven't even
> gotten into retail rents in the future etc. I hear that some time
> ago they asked for $200 million for their rights to walk away. They
> have to be forced to fix our buildings (Casino, CH and pavillions)
> or walk away from the whole deal. NO MORE APPROVALS FOR
> SUBDEVELOPERS UNTIL WORK IS COMMENCED ON HISTORIC BUILDINGS (with
> financial guarantees in place).
>
And lets not forget technical oversight, lest we get the band-aid fix.
Werner
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