--- In AsburyPark@yahoogroups.com, "oakdorf" <[EMAIL PROTECTED]> wrote:
>
> Maybe it just came down to economics.
There are horror stories out there. Lenders are simply reneging on
prior promises. The spigot is essentially turned off. There is a real
credit crisis. People outside of the business don't know how bad it
really is. I doubt it will blow over in the next fews months.
If you go back and search my posts from over a year ago when I saw the
confidential Esperanza pro forma you will see that I said I found it
hard how Metro could make any money out of the deal.
In all fairness, the price of copper has more than tripled since they
negotiated this deal. The prices of steel, concrete and plywood has
also gone through the roof. That all effects the bottom line. Will be
hard for Metro to break even if they could find financing.
Remember, metro paid $17.2 M for the site and is on the hook for
another 7% of sales to Partners,which was estimated at another $11+M.
Then there was $4.5 for infrastructure and the costs to demolish C-8
and the loss of using that steel.
They can try to renegotiate with Partners all they want. I doubt
Partners will agree. Why should they? They probably hope Metro goes
under, the lenders foreclose and then Partners can buy it back for
less than they sold it and then resell it to another sucker.
While I wanted the Esperanza, I thought the sale to Metro was not good
because it gave money to Partners for its investors. The only way to
get rid of Partners is to starve them and make them spend.
I've said it before and repeat it now. Unless the city becomes
proactive and tries by whatever means to get partners out, we will be
doing this for another 25 years.
Cancel the tax abatements. Stand in the way of Partners reselling the
site to another subdeveloper. Get tough and hold them in technical
default. The city cannot give an inch. Get a new lawyer.
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