  Ericsprague Member Username: Ericsprague Post Number: 25 Registered: 02-2006 |
City steps in to give Bing riverfront project a boost Faced with delays in getting riverfront condominium projects built, the City of Detroit is intervening to give a project headed by civic and business leader Dave Bing a financial push. The Detroit Brownfield Redevelopment Authority, a quasi-public arm of the city, approved a plan today that includes a bond issue backed by future tax revenues from the project to help get the project started. The plan now goes to City Council for approval. Full story: http://www.freep.com/apps/pbcs .dll/article?AID=/20071011/BUS INESS/71011035/0/COL14 Hopefully City Council will approve this as well as the Tricentennial State Park Phase II agreement soon, allowing us to see progress on a large additional area of Detroit riverfront next Spring. | ||
Diesel Member Username: Diesel Post Number: 34 Registered: 01-2007 |
My fingers are crossed for this development it will be a great addition. Of course the next important step after this council approval is going to be some sales in Dec. when the open the sales office. I wonder what sales target this development will need to break ground and keep financing moving. | ||
Emu_steve Member Username: Emu_steve Post Number: 477 Registered: 11-2006 |
Two thoughts: 1). I thought the only thing that sold well in Detroit in December were Christmas trees not housing. ;-) 2). I keep forgetting, but how far is this developement from the @Water development? | ||
Lefty2 Member Username: Lefty2 Post Number: 322 Registered: 07-2007 |
i hope city council gives it a nod, would be very good to have more people there. but it a makes one wonder about financial viability if most of these projects need $ assistance. | ||
Thejesus Member Username: Thejesus Post Number: 2389 Registered: 06-2006 |
lefty, I wondered the same thing too but after reading the article, it sounds like most of the problem is that access to capital has tightened up due to the issues in the mortgage industry, and that investors are being overly cautious... It sounds like they are just trying to get the ball rolling in anticipation that the housing market will be somewhat back to normal by the time these condos are finished being built in 2010... | ||
Iheartthed Member Username: Iheartthed Post Number: 1860 Registered: 04-2006 |
it sounds like most of the problem is that access to capital has tightened up due to the issues in the mortgage industry, and that investors are being overly cautious... I wondered aloud on here a month or so ago how the credit tightening standards would affect these development projects in Detroit. It has potential to be a major setback. Will other projects have to look at alternative sources of funding as well? They probably pulled off the Book-Caddy deal just in time... | ||
Spartacus Member Username: Spartacus Post Number: 246 Registered: 07-2005 |
All of the waterfront projects are saddled with a big obstacle. The lenders are requiring a particularly high (I can't remember the exact percentage) number of units to be sold before they can can begin construction. You then have a chicken or the egg problem. You can't start until you get alot of reservations, but you can't get a lot of reservations because you haven't started. Not too many people are excited about financially committing to a place when you don't know 1) when it will be completed (or for that matter started); or 2) what it will actually look like when completed (it's hard to judge the quality of workmanship until you can actually examine a model). I'm assuming that this financing from the city will allow them to get the ball rolling. |
