Re: [UC] Campus Inn

[lomb21]

Tony,

Thanks for clearing up some of the confusion around the question posed by SH.

I have one question about the facts in your post:? your last paragraph contains 
the core mis-conception about this Hotel-? that if this project is not built at 
40th and Pine that it will never get built.??In addition, the mis-conception is 
that there will be jobs lost and families will have no where to stay while 
their loved ones are at extended stays in area hospitals.? (In fact there is a 
three story, extended stay hotel being built on 39th and Spruce right now!)

Tony, there are so many alternative locations for this hotel in our area, that 
ANY feature of this hotel that you see in the 40th and Pine location is 
available elsewhere.? For example, are you fascinated by the "located near 
public transportation" claim that the 40th and Pine Hotel claims?? There is 
probably no location in all of UC that is not equally located near public 
transportation.? How about locating on any of the 30 acres that Penn just 
bought near 30th St Station?

If there is such a market need for the hotel then it can be built virtually 
anywhere in UC and the market forces for occupancy will be the same.

I want to be clear that I am opposed to the location of the hotel at this 
particular site.? In addition, I am in favor the the erection of an extended 
stay hotel somewhere more appropriate in UC.

I believe that the issues surrounding whether it should be built on this 40th 
and Pine site seem to me to be:? the opposition does not want the intrusion of 
a large commercial building into a?residential three story?neighborhood in a 
case where there are alternatives.? The developers arguments are largely 
economic ones (need for the hotel rooms, jobs at the hotel, completion of the 
40th St commercial corridor).

I hear the same economic argument in your post and I wanted to point out that 
none of the economic problems that you?mention (loss of jobs and lack of hotel 
rooms) will occur if the hotel is built elsewhere.

Guy



-Original Message-
From: Anthony West 
To: UnivCity listserv 
Sent: Sun, 21 Dec 2008 7:04 pm
Subject: Re: [UC] Campus Inn


No, it's not going to do that, SH. "The development group" isn't really a 
single business of any kind, either public or private, so there is no "it" to 
go into bankruptcy.?
?
"Its" partners are the University of Pennsylvania, which is nowhere near 
bankruptcy, and the Hilton chain (there've been no large-scale collapses in the 
hospitality industry yet, although these are certainly tough times for 
restaurants and probably for hotels as well). Perhaps there are other 
real-estate operators with tiny stakes.?
?
Unlikely the Campus Inn matters enough to any of its participants to thrust 
them into insolvency. Failure of the project might mean a few people who are 
working on its plans may be cut by their employers or have their careers 
dampened.?
?
Of more importance to the rest of society, it would cause several major 
business contracts not to be written and hundreds of people not to get new 
jobs, precisely as we slide into a global recession. These are the kinds of 
economic issues at stake for policy-makers in this controversy.?
?
-- Tony West?
?
> Hi,?
>?
> Could someone spell this out for me??
>?
> Does this mean the campus inn development group is going to file for?
> bankruptcy??
>?
> - SH?
>?
> ?
> You are receiving this because you are subscribed to the?
> list named "UnivCity." To unsubscribe or for archive information, see?
> .?
>?
>?
> ?
?
You are receiving this because you are subscribed to the?
list named "UnivCity." To unsubscribe or for archive information, see?
.?

Re: [UC] Campus Inn

[Glenn moyer]

"there are so many alternative locations for this hotel in our area, that ANY feature of this hotel that you see in the 40th and Pine location is available elsewhere."  
Absolutely.  And for those who believe this is intended for hospital extended stays, they should consider the Penn tower hotel.  Penn had  a hotel across from Chop and HUP!   And directly west from the Penn tower hotel is the VA hospital.  There simply was no better location for hospital families, but Penn converted it!  The altruistic claims, about convenience for hospital families, are obviously false after we remember this Penn tower hotel.  Was it lack of hotel guests or just an uncaring profit maximizing decision?  Who knows.
(Guy, Mr. West's post is a classic appeal to the "shock doctrine"  which has been used so effectively to concentrate power by frightening our society.  Of course, the job loss scare is complete nonsense, as you correctly point out.  Thanks)  
Real Problem:   Building Campus Inn at the 40th and Pine location, Penn and the developers need to completely destroy the standards of historic preservation and destroy the existing major zoning rules for a residential neighborhood.  Since these developers refuse to engage the community honestly, we must  assiduously and sagaciously analyze their motivitations, as so many of our neighbors have done.  (Mayor Nutter's vesting of power in an unaccountable PCPC indicates to me that all corporate giants will soon be exused from any and all rules for little businesses.  Campus Inn seems to be a precedent for smashing rules across West Philly)
Reality:   The university is "landbanking" the parcel at 40th and Pine so that it owns the lot forever.  Using the principal of economic rent seeking, the university wishes to maximize profit on the parcel without effort for an extended period of time.  Because "conflicts of interest" have become the major guiding principal at modern corporate universities, the insiders wish to also maximize the profits of cronies.  Tom and Campus apartments are partners with penn real estate on UCD, BID, rule of city gvernment, etc.  That is why the "17 or 18 proposals" which went before Esaul Sanchez, (before development of the site was known pulicly) never had a chance of turning the parcel into a reasonable development project.  (As someone with deep ties to the university when it was a center for research and education; I am offended at the way the power brokers rejected the 17 or 18 proposals to maximize the profits of real estate cronies)
Guy, I believe you pointed out in testimony that while Penn has been unofficially claiming a financial hardship during all their presentations, they have refused to open the parcel for bids.  You are absolutely right to challenge this failure and the hardship claims.  Also, they have to date refused to transparently show  the "17 or 18 proposals" they received internally, so that we could analyze their claims that nothing else can possibly develop that site within or close to existing rules.
 Penn could be building an additional hotel on the postal lands, and either a bed and breakfast or academic department couuld be rehabbing 40th and Pine right now! (the two projects employing a larger number of workers).
Thanks for shedding light on this latest appeal to economic fear using the shock doctrine!
Glenn 
-Original Message- From: lom...@aol.com Sent: Dec 22, 2008 3:47 AM To: anthony_w...@earthlink.net, UnivCity@list.purple.com Subject: Re: [UC] Campus Inn Tony,Thanks for clearing up some of the confusion around the question posed by SH.I have one question about the facts in your post:  your last paragraph contains the core mis-conception about this Hotel-  that if this project is not built at 40th and Pine that it will never get built.  In addition, the mis-conception is that there will be jobs lost and families will have no where to stay while their loved ones are at extended stays in area hospitals.  (In fact there is a three story, extended stay hotel being built on 39th and Spruce right now!)Tony, there are so many alternative locations for this hotel in our area, that ANY feature of this hotel that you see in the 40th and Pine location is available elsewhere.  For example, are you fascinated by the "located near public transportation" claim that the 40th and Pine Hotel claims?  There is probably no location in all of UC that is not equally located near public transportation.  How about locating on any of the 30 acres that Penn just bought near 30th St Station?If there is such a market need for the hotel then it can be built virtually anywhere in UC and the market forces for occupancy will be the same.I want to be clear that I am opposed to the location of the hotel at this particular site.  In addition, I am in favor the the erection of an extended stay hotel somewhere more appropriate in UC.I believe that the issues surrounding whether it should be built on this 40th and Pine site seem to me to be:  the

Re: [UC] Campus Inn

[Anthony West]

Guy,

I don't disagree at all with these points of yours, and I didn't 
actually contend either of those "misconceptions". This is a big city 
and a big neighborhood, wherein all sorts of development possibilities 
will arise over time. And any real-estate parcel tends to have multiple 
possibilities, depending on how you fiddle with it.


It is true, nonetheless, that questions of new job and business 
generation will be the chief *strictly economic* concerns that city 
planners will weigh when evaluating this or any similar project in our 
area. Growth control is not, repeat not, a top priority for the City of 
Philadelphia -- a city that has been losing jobs and residents for 50 
years -- as it enters 2009. Just look at the City's budget and do the 
math yourself. This isn't something I'm advocating, just something I'm 
noticing.


-- Tony West


Thanks for clearing up some of the confusion around the question posed 
by SH.


I have one question about the facts in your post:  your last paragraph 
contains the core mis-conception about this Hotel-  that if this 
project is not built at 40th and Pine that it will never get 
built.  In addition, the mis-conception is that there will be jobs 
lost and families will have no where to stay while their loved ones 
are at extended stays in area hospitals.  (In fact there is a three 
story, extended stay hotel being built on 39th and Spruce right now!)



I hear the same economic argument in your post and I wanted to point 
out that none of the economic problems that you mention (loss of jobs 
and lack of hotel rooms) will occur if the hotel is built elsewhere.


Guy




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[UC] Police sketch of person who terrorized two neighbors at 4400 Spruce

[Krfapt]

Police sketch of person who got into the Hallway of Campus Apts' building  at 
4400 Spruce and terrorized two residents.
 

 



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[UC] SHCA support for Campus Inn

[Glenn moyer]

Report:

As many people suspected, SHCA President Ed Haligen, was present to support 
Campus Inn at the recent PHC charade/hearing to rubber stamp the towering 
project.  His testimony attempted to make the case that the community is evenly 
divided in support or opposition to the hotel.  He claimed that the split vote 
of the zoning committee “reflected” the opinion of the larger community, 
insinuating a 50-50 split among all of us.

Additionally, the Penn lawyer maintained the false assertion that many many 
SHCA public meetings had educated the community.  Mr. Halligen supported this 
too and claimed that he remembered “hundreds” coming to SHCA elections in Nov. 
2007.  Of course he knew, no Campus Inn forum was announced to SHCA members, 
let alone the general public!  

Note: (As I reported the day of the hearing, the PHC commission repeatedly 
silenced our neighbors when they attempted to correct those lies.  After the 
lies were provided by Penn in testimony, PHC claimed that public meetings were 
irrelevant to their standards, as they silenced our neighbors trying to 
challenge the lies.  Of course, PHC didn’t follow the appropriate preservation 
standards, and have freely allowed the lies from the Penn team, about public 
support and engagement, throughout the year long charade.)


SHCA Background:  SHCA leaders had been conducting secret meetings with the 
developers since before the public knew of the hotel proposal.  (Apparently, 
SHCA supported the original request to delist/demolish the historically 
designated property while keeping that attempt from us in early 2007.)  
Repeatedly, SHCA leaders shielded lies about public forums and engagement with 
the community.  They championed their secret meetings to be misrepresented as 
public forums with the community.  
Mr. Grossbach, chairman of SHCA zoning committee, was present in Oct 2007 when 
the developers first lied, in recorded testimony, about an SHCA process of 
community engagement.  He waited until Feb. 2008 to admit that the claims were 
false even though repeated requests for clarification were made immediately and 
continuously after the developers first lied!  (He claimed the lies were all 
insignificant mistakes, a few hours before the public had him cornered)

On several subsequent occasions, SHCA member meetings were sighted as public 
forums yet we know that a series of “mistakes” caused the organization to 
always forget to announce its public forums, even to members.

February 2008:  When the community caught these slippery SHCA leaders, and 
unanimously rejected the hotel in February; the SHCA leaders insisted that they 
would keep their dirty noses out of the debate because a lawyer had been hired. 
 What they were doing was to refuse all subsequent SHCA members’ public 
discussions and simultaneously refused to honor the demands of the community to 
reject it.  What a contemptuous ploy

Recently, the SHCA leaders pounced at their chance with more secret meetings, 
to provide a position of “non-opposition,” even though they had publicly 
announced that they would keep their dirty noses out of the proceedings.

Dec. 2008:  Now Haligen (accompanied by Hardy), testifies to a government 
commission in support of the false claims of public meetings, and twists the 
“non-opposition” of the dirty zoning committee, as a reflection of the 
community sentiments.  The SHCA members must ask, how dare this Haligan show up 
and use this non-opposition as support for Campus Inn, and reinforce the direct 
lies about SHCA facilitating a series of public forums?

The people of the community must ask the on-going question.  How dare these 
SHCA jerks continue to assert that any of their secret meetings and other shit 
“reflects” the views of this community
How many times are we going to sit back and let these dirty contemptuous 
“community leaders” do the same crap to our community? 

Reporting,
Glenn Moyer, citizen journalist
PS:  UC Review has made a report of the PHC meeting and this is my second.  
There is much more to discuss, report, and question about the PHC charade.  
Please ask questions and I’ll do my best to answer.


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Re: [UC] Campus Inn

[lomb21]

I appreciate your position and I hope I'm not beating a dead horse, but my 
personal dream is that there is an 11 story extended stay hotel built within 
UC, but not at 40th and Pine.? In addition, I dream that the 40th and Pine site 
is developed by Campus Apartments and Tom Lussenhop as a high end restaurant 
with 25 car parking and either classroom or community space on the second and 
third floor.? That way the City gets lots of construction and service jobs 
along with the multitude of fees that come along with development.? 

The community is enriched by the development and the 40th and Pine/Woodland 
Terrace neighborhood is preserved and enhanced.

You and I?might be saying the same thing.

Guy


-Original Message-
From: Anthony West 
To: UnivCity listserv 
Sent: Mon, 22 Dec 2008 9:28 am
Subject: Re: [UC] Campus Inn


Guy,?
?
I don't disagree at all with these points of yours, and I didn't actually 
contend either of those "misconceptions". This is a big city and a big 
neighborhood, wherein all sorts of development possibilities will arise over 
time. And any real-estate parcel tends to have multiple possibilities, 
depending on how you fiddle with it.?
?
It is true, nonetheless, that questions of new job and business generation will 
be the chief *strictly economic* concerns that city planners will weigh when 
evaluating this or any similar project in our area. Growth control is not, 
repeat not, a top priority for the City of Philadelphia -- a city that has been 
losing jobs and residents for 50 years -- as it enters 2009. Just look at the 
City's budget and do the math yourself. This isn't something I'm advocating, 
just something I'm noticing.?
?
-- Tony West?
?
> Thanks for clearing up some of the confusion around the question posed > by 
> SH.?
>?
> I have one question about the facts in your post: your last paragraph > 
> contains the core mis-conception about this Hotel- that if this > project is 
> not built at 40th and Pine that it will never get > built. In addition, the 
> mis-conception is that there will be jobs > lost and families will have no 
> where to stay while their loved ones > are at extended stays in area 
> hospitals. (In fact there is a three > story, extended stay hotel being built 
> on 39th and Spruce right now!)?
>?
>?
> I hear the same economic argument in your post and I wanted to point > out 
> that none of the economic problems that you mention (loss of jobs > and lack 
> of hotel rooms) will occur if the hotel is built elsewhere.?
>?
> Guy?
?
?
You are receiving this because you are subscribed to the?
list named "UnivCity." To unsubscribe or for archive information, see?
.?

RE: [UC] Campus Inn

[KAREN ALLEN]

RE: "Penn could be building an additional hotel on the postal lands, and either 
a bed and breakfast or academic department couuld be rehabbing 40th and Pine 
right now! (the two projects employing a larger number of workers)".
 
Right, Glenn.  Penn and its water carriers want everyone to believe that there 
is nothing else possible that they can do with the building that makes 
"economic sense". Contrary to comparisons made at the last few HC hearings, 
Penn is not a private individual with limited finances, and the assertion is 
totally off base. Penn can cede the land to any number of academic departments 
and ask its deep pool of donors to pony up the money. AS HAS BEEN DONE: When 
Wharton wanted to expand to the site of the old Penn bookstore at 38th and 
Walnut, did not an individual named Jon Huntsman make such a large donation 
that the building is named for him???  
The thing to understand is that ridiculous claims such as that are made, not 
because they're true, but because they give the decisionmakers an excuse to 
justify rubberstamping the proposal. Then the claims are latched upon and 
repeated as true and anything that exposes the fallicy of the claims are 
ignored. 
  
And if they're going to build a 3 story building in the 3900 block of Spruce, 
around the corner from 40th and Pine on a VACANT LOT, why can't they build the 
Campus Inn on the vacant lot and renovate the mansion for the other project??? 



Date: Mon, 22 Dec 2008 08:38:14 -0500From: glen...@earthlink.netto: 
lom...@aol.com; anthony_w...@earthlink.net; univc...@list.purple.comsubject: 
Re: [UC] Campus Inn


"there are so many alternative locations for this hotel in our area, that ANY 
feature of this hotel that you see in the 40th and Pine location is available 
elsewhere."  
 
Real Problem:   Building Campus Inn at the 40th and Pine location, Penn and the 
developers need to completely destroy the standards of historic preservation 
and destroy the existing major zoning rules for a residential neighborhood.  
Since these developers refuse to engage the community honestly, we must  
assiduously and sagaciously analyze their motivitations, as so many of our 
neighbors have done.  (Mayor Nutter's vesting of power in an unaccountable PCPC 
indicates to me that all corporate giants will soon be exused from any and all 
rules for little businesses.  Campus Inn seems to be a precedent for smashing 
rules across West Philly)
Reality:   The university is "landbanking" the parcel at 40th and Pine so that 
it owns the lot forever.  Using the principal of economic rent seeking, the 
university wishes to maximize profit on the parcel without effort for an 
extended period of time.  Because "conflicts of interest" have become the major 
guiding principal at modern corporate universities, the insiders wish to also 
maximize the profits of cronies.  Tom and Campus apartments are partners with 
penn real estate on UCD, BID, rule of city gvernment, etc.  That is why the "17 
or 18 proposals" which went before Esaul Sanchez, (before development of the 
site was known pulicly) never had a chance of turning the parcel into a 
reasonable development project.  (As someone with deep ties to the university 
when it was a center for research and education; I am offended at the way the 
power brokers rejected the 17 or 18 proposals to maximize the profits of real 
estate cronies)
Guy, I believe you pointed out in testimony that while Penn has been 
unofficially claiming a financial hardship during all their presentations, they 
have refused to open the parcel for bids.  You are absolutely right to 
challenge this failure and the hardship claims.  Also, they have to date 
refused to transparently show  the "17 or 18 proposals" they received 
internally, so that we could analyze their claims that nothing else can 
possibly develop that site within or close to existing rules.
 Penn could be building an additional hotel on the postal lands, and either a 
bed and breakfast or academic department couuld be rehabbing 40th and Pine 
right now! (the two projects employing a larger number of workers).
Thanks for shedding light on this latest appeal to economic fear using the 
shock doctrine!
Glenn 
-Original Message- From: lom...@aol.com Sent: Dec 22, 2008 3:47 AM To: 
anthony_w...@earthlink.net, UnivCity@list.purple.com Subject: Re: [UC] Campus 
Inn Tony,Thanks for clearing up some of the confusion around the question posed 
by SH.I have one question about the facts in your post:  your last paragraph 
contains the core mis-conception about this Hotel-  that if this project is not 
built at 40th and Pine that it will never get built.  In addition, the 
mis-conception is that there will be jobs lost and families will have no where 
to stay while their loved ones are at extended stays in area hospitals.  (In 
fact there is a three story, extended stay hotel being built on 39th and Spruce 
right now!)Tony, there are so many alternative locations for this

[UC] Freda’s letter, Nutter budget

[Glenn moyer]

Freda has an excellent letter in the Review. 
 

http://www.ucreview.com/default.asp?sourceid=&smenu=112&twindow=&mad=&sdetail=1177&wpage=&skeyword=&sidate=&ccat=&ccatm=&restate=&restatus=&reoption=&retype=&repmin=&repmax=&rebed=&rebath=&subname=&pform=&sc=2320&hn=ucreview&he=.com



Freda, without beating around the bush, M. Nutter obviously wanted to shut 
these facilities before the recession.  The recession is his 9/11.  

There was no careful decision process.  They can’t even give an explanation of 
why these particular libraries were chosen that isn’t obvious fluff.  Picking 
the 2 mile standard, comparing Philadelphia to car cities with funded school 
libraries, is an insulting ploy too.

We are supposed to be fooled into thinking that this shows careful and 
professional decision making!  This is pure corporate spin technique to cloak a 
predetermined goal.  How many times have we seen this bogus review of the 
literature before?  This trick and his town hall shows, assume that we are 
idiots!
 
I saw a suggestion on Brendancalling about Kingsessing.  The parcel, with the 
library and Rec center, is large enough for a super-sized suburban style 
shopping center with parking.  Has anyone else heard about this interest in 
that site? 
 
Forget about M. Nutter’s spin.  We need to ask, what corporations are the other 
10 libraries destined to go to?  At least we know that Super Philadelphia is 
planned to end at 50th and Chester.

I agree with pretty much everything in your letter.  Keep discussing the truth!

Glenn


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[UC] Christmas eve music tradition at 47th & Springfield

[MLamond]

Whether or not Christmas is a religious holiday for you - whether or not you 
celebrate it at all! - if you appreciate the sound of a wonderful choir and an 
incredible organ in the setting of a Victorian Byzantine church, and the 
ceremony of late-night music on Christmas eve, this is the place to be!   You 
can 
go for the first half hour, the first hour, or the entire time - people slip 
in and out at various times.   Though my husband and I are not regular church 
attendees, this has become a "can't-miss" Christmas eve tradition for us.
  
Dear Friends,
  
 You are invited to share the spirit of Christmas at St. Francis de Sales 
Church on Wednesday night (Christmas Eve).
 11:00 – the de Sales chorale performs a variety of selections; a brass 
quintet joins us again this year
 11:30 – an abbreviated readings and carols service, culminating with our 
incomparable local Diva, Cecelia Chaisson, singing O Holy Night just before 
mass 
begins
 12:00 – mass at midnight, a long-standing tradition for our community. 
Bishop McFadden will preside.
  
 Please join us for the entire evening or stop in before mass just to hear 
the music and share some special time with friends and neighbors.
  
 We hope to see you there,
 Isabel Boston
 Choir director, St. Francis de Sales Church

The church is at the corner of 47th & Springfield.   Don't be put off by the 
scaffolding out front - just go up the steps and enter through the doors 
behind the scaffolding.
 - Melani Lamond


Melani Lamond, Associate Broker
Urban & Bye, Realtor
PA License Number AB048377L
3529 Lancaster Ave., Philadelphia, PA 19104
cell phone 215-356-7266 - office phone 215-222-4800 #113



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[UC] Not bankruptcy, but inability to get the money for the project

[Krfapt]

I don't think that the wonderful folks who want to ruin the visual  
aesthetics and overall ambience of our neighborhood with a cheesy-looking  
monstrosity 
of a hotel at 40th & Pine are headed for bankruptcy (assuming,  that is, they 
don't have massive debt from other projects coming due). But I  think there's 
a serious question as to whether they can get their paws on the  money it will 
take to carry through the project, despite what may have been the  outlook 
when this whole messy business began, owing to the economic malaise now  
worrying apparently everyone but Tom Lussenhop (who probably doesn't money to  
worry 
about, which may be why he's so dogged about getting this moving).
 
As an indication of what I mean, here's an article that appeared in today's  
Wall Street Journal. Synopsis, if you don't want to read all the long, boring  
passages ... there's no money for real estate development these days.  Period.
 
If Campus Apts & company have the money already committed and locked  up, let 
them give us proof that it's sitting there ready to be spent on the  project.
 
Al Krigman   


  



Developers Ask U.S. for Bailout as Massive Debt  Looms
by Lingling Wei and Jon Hilsenrath
 
With a record amount of commercial real-estate debt coming due, some of the  
country's biggest property developers have become the latest to go hat-in-hand 
 to the government for assistance.

They're warning policymakers that  thousands of office complexes, hotels, 
shopping centers and other commercial  buildings are headed into defaults, 
foreclosures and bankruptcies. The reason:  according to research firm 
Foresight 
Analytics LCC, $530 billion of commercial  mortgages will be coming due for 
refinancing in the next three years -- with  about $160 billion maturing in the 
next year. Credit, meanwhile, is practically  nonexistent and cash flows from 
commercial property are siphoning  off.

Unlike home loans, which borrowers repay after a set period of time,  
commercial mortgages usually are underwritten for five, seven or 10 years with  
big 
payments due at the end. At that point, they typically need to be  refinanced. 
A borrower's inability to refinance could force it to give up the  property to 
the lender.

A recent letter sent to Treasury Secretary Henry  Paulson, and signed by a 
dozen real-estate trade groups, painted a bleak  scenario: "Right now, we 
believe there is insufficient systemic capacity to  refinance expiring, 
performing 
commercial real-estate loans," said the letter.  "For many borrowers, [credit] 
simply is not available," the letter  noted.

To head off some of the impending pain, the industry is asking to  be 
included in a new $200 billion loan program initially created by the  
government to 
salvage the market for car loans, student loans and credit-card  debt. This 
money is intended to go directly to help investors finance purchases  of 
securities backed by these assets. If commercial real estate is included,  
banks might 
have an incentive to make more loans to developers since they'd be  able to 
repackage and sell them more easily to investors with the assurance of  
government backing.

As part of their lobbying efforts, some industry  representatives have asked 
lawmakers to explore the idea of setting up a  separate program aimed at 
boosting lending to commercial real estate  only.

"We've been urging Washington to put this as one of the top  priorities in 
dealing with the economy," says Steven Spinola, president of the  Real Estate 
Board of New York, underscoring the need for the government to help  spur 
commercial property lending either directly or indirectly.

The  real-estate executives are warning that the approaching surge in 
commercial  mortgages coming due poses another major threat to the global 
financial 
system,  which already is on life support. With rent prices falling and 
vacancies rising  due to the weakening economy, delinquencies on commercial 
mortgages 
already have  begun to rise sharply.

Up until now, delinquencies on commercial  real-estate loans have stayed 
below historical levels thanks in part to the  limited amount of speculative 
construction in recent years. But now they're  rising at a time when a huge 
volume 
of loans are coming due and some of the few  institutions that were still 
making loans are retreating from the  market.

"The credit crisis has got so bad that refinancing of even good  loans may be 
drying up," says Richard Parkus, head of commercial-mortgage-backed  
securities research at Deutsche Bank.

Commercial real-estate owners, of  course, are just the latest to get in line 
in Washington, D.C., for the billions  of bailout dollars that the government 
has begun to hand out. Other businesses  that have received or are 
campaigning for some form of aid include banks,  credit-card issuers, car 
companies and 
even farm equipment maker Deere &  

Re: [UC] Not bankruptcy, but inability to get the money for the project

[Anthony West]

NPR reported this also today. So the hotel industry may indeed be the 
next to bite the bullet. If so, then we may not see much hotel-building 
on 40th St. or anywhere else next year.


Of course, Penn can't do anything else with the property either in the 
meantime. In that case, the property would just sit there abandoned for 
a spell longer.


When credit comes back again, Penn would surely try to do something with 
the site again and take another spin on the wheel. Who knows if Hilton 
would still be interested, or who else might be?


-- Tony West

I don't think that the wonderful folks who want to ruin the visual 
aesthetics and overall ambience of our neighborhood with a 
cheesy-looking monstrosity of a hotel at 40th & Pine are headed for 
bankruptcy (assuming, that is, they don't have massive debt from other 
projects coming due). But I think there's a serious question as to 
whether they can get their paws on the money it will take to carry 
through the project, despite what may have been the outlook when this 
whole messy business began, owing to the economic malaise now worrying 
apparently everyone but Tom Lussenhop (who probably doesn't money to 
worry about, which may be why he's so dogged about getting this moving).
 
As an indication of what I mean, here's an article that appeared in 
today's Wall Street Journal. Synopsis, if you don't want to read all 
the long, boring passages ... there's no money for real estate 
development these days. Period.
 
If Campus Apts & company have the money already committed and locked 
up, let them give us proof that it's sitting there ready to be spent 
on the project.
 
Al Krigman



** 
*Developers Ask U.S. for Bailout as Massive Debt Looms*

*by Lingling Wei and Jon Hilsenrath*
 
With a record amount of commercial real-estate debt coming due, some 
of the country's biggest property developers have become the latest to 
go hat-in-hand to the government for assistance.


They're warning policymakers that thousands of office complexes, 
hotels, shopping centers and other commercial buildings are headed 
into defaults, foreclosures and bankruptcies. The reason: according to 
research firm Foresight Analytics LCC, $530 billion of commercial 
mortgages will be coming due for refinancing in the next three years 
-- with about $160 billion maturing in the next year. Credit, 
meanwhile, is practically nonexistent and cash flows from commercial 
property are siphoning off.


Unlike home loans, which borrowers repay after a set period of time, 
commercial mortgages usually are underwritten for five, seven or 10 
years with big payments due at the end. At that point, they typically 
need to be refinanced. A borrower's inability to refinance could force 
it to give up the property to the lender.


A recent letter sent to Treasury Secretary Henry Paulson, and signed 
by a dozen real-estate trade groups, painted a bleak scenario: "Right 
now, we believe there is insufficient systemic capacity to refinance 
expiring, performing commercial real-estate loans," said the letter. 
"For many borrowers, [credit] simply is not available," the letter noted.






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Re: [UC] Campus Inn

[Anthony West]

An interesting idea. It ought to be possible to cook up ballpark numbers 
on such a project just by pacing it off and running conventional 
restaurant-industry projections on it. How much would it cost to rip all 
that crud off the existing mansion and rehab it to Historic-Designation 
standards? How many high-end seatings an evening could you fit into that 
historic 1st floor? Could the income from such a venture pay for the 
rehabbing, plus maintenance of the 2nd and 3rd-floor space, plus keep 
the restaurateur alive?


I'm all for it if it's possible. But I greatly fear the reason the 
mansion was expanded horizontally into a nursing home 30-odd years ago, 
was because there was no commercial way to make a building of that age 
and size pay for its own upkeep even then. Has anything changed since to 
make it practical today?


If anybody can come up with some estimates, it'd be fascinating to read 
them.


-- Tony West


I appreciate your position and I hope I'm not beating a dead horse, 
but my personal dream is that there is an 11 story extended stay hotel 
built within UC, but not at 40th and Pine.  In addition, I dream that 
the 40th and Pine site is developed by Campus Apartments and Tom 
Lussenhop as a high end restaurant with 25 car parking and either 
classroom or community space on the second and third floor.  That way 
the City gets lots of construction and service jobs along with the 
multitude of fees that come along with development. 

The community is enriched by the development and the 40th and 
Pine/Woodland Terrace neighborhood is preserved and enhanced.


You and I might be saying the same thing.

Guy




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Re: [UC] Campus Inn

[lomb21]

I don't want to bore the UC list with price/sq' numbers and rent/sq' numbers, 
but suffice it to say that the rents that the University has asked for and 
received by their retail tenants in 1) the HUB? 2) the Domus project and 3) the 
Radian are close to and exceeding those received in some of the "better" 
sections of the City.? These impressive rents and the success of such 
restaurateurs such as Steven Starr (with Pod, one of his most successful Philly 
spots) and Jose Garces (at the HUB) have inspired several of the other "hot" 
Philly restaurateurs to be chasing locations in UC/West Philly.

There's no written guarantee, of course, and these difficult economic times 
might challenge any of the numbers that I am quoting you, but a 4,000 - 6,000 
sq' first floor restaurant with 25 car parking should be able to generate 
enough rental income to pay the debt-service on the rehab of the entire 10,000 
sq' mansion at 40th and Pine.? If you throw in Historic Tax benefits and 
possible State subsidies and other benefits to the site then it becomes a 
viable development opportunity.? The rental income from any use of the upstairs 
5,000 sq' (whether office rental or auxiliary classroom) would further enhance 
the economic viability of the site.

It would also be true that a 10,000 sq' development would be substantially less 
profitable than a 90,000 sq' development? if they both succeed.? I hope 
that this simple math is not the reason that the University is not considering 
locating their extended stay hotel on a more appropriate site


-Original Message-
From: Anthony West 
To: UnivCity listserv 
Sent: Mon, 22 Dec 2008 2:42 pm
Subject: Re: [UC] Campus Inn


An interesting idea. It ought to be possible to cook up ballpark numbers on 
such a project just by pacing it off and running conventional 
restaurant-industry projections on it. How much would it cost to rip all that 
crud off the existing mansion and rehab it to Historic-Designation standards? 
How many high-end seatings an evening could you fit into that historic 1st 
floor? Could the income from such a venture pay for the rehabbing, plus 
maintenance of the 2nd and 3rd-floor space, plus keep the restaurateur alive??
?
I'm all for it if it's possible. But I greatly fear the reason the mansion was 
expanded horizontally into a nursing home 30-odd years ago, was because there 
was no commercial way to make a building of that age and size pay for its own 
upkeep even then. Has anything changed since to make it practical today??
?
If anybody can come up with some estimates, it'd be fascinating to read them.?
?
-- Tony West?
?
> I appreciate your position and I hope I'm not beating a dead horse, > but my 
> personal dream is that there is an 11 story extended stay hotel > built 
> within UC, but not at 40th and Pine. In addition, I dream that > the 40th and 
> Pine site is developed by Campus Apartments and Tom > Lussenhop as a high end 
> restaurant with 25 car parking and either > classroom or community space on 
> the second and third floor. That way > the City gets lots of construction and 
> service jobs along with the > multitude of fees that come along with 
> development. >?
> The community is enriched by the development and the 40th and > Pine/Woodland 
> Terrace neighborhood is preserved and enhanced.?
>?
> You and I might be saying the same thing.?
>?
> Guy?
?
?
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