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The Whitney Condos - City Staff Knew Loan Would Fail

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Started 5 months ago by cheap
Latest reply from mrpoppinzs

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cheap
Westgate
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Columbus city govt. is incompetent

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City staff knew loan would fail
By Doug Caruso
The Columbus Dispatch
Sunday December 25, 2011 6:16 AM

By the time Columbus development officials lent $3.4 million in taxpayer money to the developers of the Whitney condominiums, they knew they’d never see it again.

READ MORE: http://www.dispatch.com/content/graphics/2011/12/25/whitneyfolo-art0-gkpfd01i-1whitneyfolo-crr1-jpg.jpghttp://www.dispatch.com/content/stories/local/2011/12/25/city-staff-knew-loan-would-fail.html

Posted 5 months ago #
hugh59
Aboard the ultimate power in Olde Towne East
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What a mess. I cannot tell what happened from the story. You would probably need a forensic accountant to go over the project to see what happened. Why were there cost overruns? Why were there delays?

This looks like another version of a situation I have seen before: a project is built and ends up costing much more than anticipated...so much more that it can never be run profitably. The units will be sold, but the selling entity that (ultimately) paid to build them will lose a great deal of money.

At this point, the construction costs are a sunk cost. The best we can hope for is that the project can be finished and the units sold and occupied. Hopefully this will be feasible. Another alternative is that the cost of completing the units is too high and that the amounts realized by selling them will not cover the completion costs...in which case the "best" thing to do would be to abandon the project.

Posted 5 months ago #
Walker
The KLD / Downtown
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Previous news here:

http://www.columbusunderground.com/forums/topic/whitney-condos-getting-bailed-out-by-the-city-1

Posted 5 months ago #
cheap
Westgate
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your city government is incompetent.

after the bluejackets collapse,and the arena sits empty with no tenants,then you will really see the ramifications of what these boobs in office have done to this town.

Posted 5 months ago #
Jordans23000
space
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Incompetent is a little strong for the same regime that Columbus has become the best city in the state (and maybe midwest) under, lets just say they struck out with this one, can't hit homers every at-bat though.

Posted 5 months ago #
jbcmh81

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cheap said:
your city government is incompetent.

after the bluejackets collapse,and the arena sits empty with no tenants,then you will really see the ramifications of what these boobs in office have done to this town.

Please stay in the suburbs. For every mistake the city makes, they've made 10x as many successes. Government doesn't always work, but I would not call Columbus' city government incompetent.

Posted 5 months ago #
cheap
Westgate
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make it a new homeless shelter.

the people running this town are a puppet regime.

their actions speak for themselves.

Posted 5 months ago #
Walker
The KLD / Downtown
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cheap said:
the people running this town are a puppet regime.

Who's the puppet master?

Posted 5 months ago #
Chris Sherman
East Franklinton
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Walker said:
Who's the puppet master?

the Illuminati!

Posted 5 months ago #
cheap
Westgate
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Walker said:
Who's the puppet master?

Posted 5 months ago #
Coremodels
Really close to Explorer's Club.
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Walker said:
Who's the puppet master?

Posted 5 months ago #
Walker
The KLD / Downtown
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cheap said:
The Dispatch

So why did The Dispatch want The City of Columbus to invest this money into this housing development?

Posted 5 months ago #
Coremodels
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Walker said:
So why did The Dispatch want The City of Columbus to invest this money into this housing development?

I'm sure it was Penn National's fault.

Posted 5 months ago #
Rockmastermike
CORNspiracy HQ
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Walker said:
Who's the puppet master?

Coremodels said:

HA! I KNEW it!

Posted 5 months ago #
Chris Sherman
East Franklinton
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cheap said:

Now I'm really confused.. Cheap do you have any idea of what your talking about? You could have at least posted a pic of Obama...

Posted 5 months ago #
Rockmastermike
CORNspiracy HQ
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Chris Sherman said:
Now I'm really confused.. Cheap do you have any idea of what your talking about? You could have at least posted a pic of Obama...

I think he's saying that the dispatch (or the controllers of... who controls the puppet masters?!) ordered the city to give whitney money so they could later come back and do a large document search and publish an investigative piece outlining how the city was duped (apparently fraudulently) to somehow profit on the whole endeavor by perhaps by selling more classified ads or printing newspapers at a slight loss. Makes perfect sense!

Posted 5 months ago #
cc

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I really like the KLD and it has received a lot of political attention in recent years. Unfortunately, if one goes through the history of this project it is easy to see the many red flags and even local community leaders that went unheeded. I just hope that lessons are learned and it does not effect future, more worthy projects in the neighborhood.

Posted 5 months ago #
Gig3000

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Why do the Whitney condos have to be rented out now? Acording to the article they must be rented.

Posted 5 months ago #
cc

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They will be rented out at market rates. There will also be a rent-to-own option, but they have not figured out a pricing structure yet. I think they are avoiding that as once unit prices are determined the full extent of the loss will become apparent.

Posted 5 months ago #
Gig3000

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Does anyone know if any of the Poindexter Village apts people have moved? I read they received their vouchers in Oct. Also, is Faith Mission expected to stay in the KLD area?

Posted 5 months ago #