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Started 1 year ago by Nitsud Regnifloh
Latest reply from JeepGirl

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Nitsud Regnifloh
Valerio Heights
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In the Columbus Dispatch this AM...

Columbus is prepared to spend $3.4 million to rescue a Near East Side condominium project that developers are struggling to finish more than three years after breaking ground.

The money would refinance a $3 million construction loan the Whitney condos project received from the nonprofit Ohio Community Development Finance Fund in 2008. It also is aimed at reducing interest rates and keeping the condominiums affordable.

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3.4 million!? you've got to be kidding me...

Posted 1 year ago #
sjack
the east side
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What exactly do you think should be done? Should we let them stay there, unfinished? I am honestly interested in what you think about this.

Posted 1 year ago #
Nitsud Regnifloh
Valerio Heights
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i think the owners need to find a way to either demolish them, or finish them.

Posted 1 year ago #
Nitsud Regnifloh
Valerio Heights
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but i know neither of those ideas will work, so the city will shell out this $$ to finish these condos that have no prospective buyers...what a shame.

Posted 1 year ago #
JoeMitchell

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what is wrong with them?

location, overpriced?

just condo financing blues?

a lot of developers need bailed out, have you seen the deliquent property tax rolls, ouch

Posted 1 year ago #
cc

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The fact that no condo's were presold and they restarted construction last year well after the bubble burst makes me think this is a case of throwing good money after bad.

It sucks since I really like the KLD, but there is plenty of affordable housing available in the area.

Saying that they need the money to finish 2 model units 'to show to as many as six prospective buyers' seems to exemplify the lack of competence of the Whitney Collaborative. If they default maybe someone with better business sense will come to the fore.

Posted 1 year ago #
JoeMitchell

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missed this when read the first time

$3M loan is not going to build 28 units and site development, even with $0 acquisition

with avg unit sqft at 1590 per unit, that puts project cost at $67 sqft

add in 30% equity to get total sources to $4M and that bumps sqft to $90, which is closer but still short

$105 puts the project cost at $4.674M, a figure I would guess is close to their current cost to complete

Posted 1 year ago #
cc

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looks like the city is having second thoughts....

http://www.dispatch.com/live/content/local_news/stories/2010/11/18/city-slows-bailout-plan-for-unfinished-condos.html?sid=101

Posted 1 year ago #
Snarf
Dystopia
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I don't want my tax dollars to go towards bailing out incompetence that's for sure.

Posted 1 year ago #
futureman
Grandview Heights
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Looks like it got approved -

http://www.dispatchpolitics.com/live/content/local_news/stories/2010/12/07/copy/35m-tax-break-for-osu.html?adsec=politics&sid=101

"The council members also took heat for approving a $3.4 million loan for the struggling Whitney condominium project on Mount Vernon Avenue. The loan will refinance $3 million that the developers of the stalled project borrowed in 2008."

Posted 1 year ago #
cc

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I am sorry they are getting the money. In my opinion, it will make it harder for future, more worthy projects, to get funded in the KLD. I hope they line up some buyers before they need bailed out again...

Posted 1 year ago #
Walker
The KLD / Downtown
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So it's a $3.4 loan that should be repaid to the city? The original news article (and the topic of this post) made it sound like it was free money being given away by the city as a "bailout".

Not saying I agree or disagree with it, as I haven't read too deeply on this specific topic, but just wanted to point out that it sounds like the conditions have either changed, or the original news story was a bit misleading.

Posted 1 year ago #
cc

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If it has to be paid back, then who will pay for it?

The Whitney Collaborative is a non-profit. If they roll the cost of this new 'loan' into the price of the condos (which have no current buyers), they will be some of the most expensive, per unit, in the city. In theory they are trying to refinance now, as the original loan interest is already pricing this project out of the market.

Posted 1 year ago #
rory
NW Short North
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cc wrote >>
If it has to be paid back, then who will pay for it?
The Whitney Collaborative is a non-profit. If they roll the cost of this new 'loan' into the price of the condos (which have no current buyers), they will be some of the most expensive, per unit, in the city. In theory they are trying to refinance now, as the original loan interest is already pricing this project out of the market.

Non-profits can get loans and pay them back.

Breaking Ground: A Guide for Non-Profit Developers

pg.16-18 are fairly informative

Posted 1 year ago #
cc

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I understand that. What I am saying is that they already had a 3 year loan ($3 million) they were not able to repay. They are getting refinanced by (I presume an interest free loan?) the city. The Whitney Collaborative now has $6.4 million in loans (actually I believe there are other loans not mentioned) and as yet no buyers. There are no other cash streams but this project.

Posted 1 year ago #
rory
NW Short North
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cc wrote >>
I understand that. What I am saying is that they already had a loan ($3.4) they were not able to pay the interest on. They are getting refinanced by (I presume an interest free loan?) the city. The Whitney Collaborative now has $6.4 million in loans (actually I believe there are other loans not mentioned) and as yet no buyers.

All in who you know? Great investment opportunity for the city? You've got me :)

Posted 1 year ago #
rory
NW Short North
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Wait, the article says that the Whitney-Young Collaborative is not in control and the Affordable Housing Trust of Columbus and Franklin County is in control of the project, or is it the loan. So, it's really like the city loaning the city money for affordable housing. I wonder if it's going to be income restricted because the philosophy of the Affordable Housing Trust is:

A majority of the homes and apartments financed by the Housing Trust are made available to families and the elderly that earn 80% of the Area Median Income and below ($51,000/yr for a family of four).
For example:

* 47% of the housing units have been made available to a family of two earning under $20,000 (two wage earners who each earn $5.00/hr) or a family of four earning under $26,000/year (two wage earners who each earn $6.50/hr)
* 31% of the housing units have been made available to a family of two earning under $30,000/year (two wage earners who earn $7.50/hr) or, a family of four earning under $38,000/year (two wage earners earning $9.50/hr

Posted 1 year ago #
cc

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No, that is regarding the new financing.

The city would refinance the loan through the Affordable Housing Trust of Columbus and Franklin County, which approved a resolution last Thursday to act as a fiduciary for the project.

That came two months after the trustÃ¢â‚¬â„¢s board approved a $756,000 construction loan for the project.

some more background:

http://www.columbusunderground.com/the-whitney-condos-break-ground-this-summer

The Whitney - Luxury Townhomes

Tony: "I think our main demographic are folks who can close on a loan. Hahaha!"

"WeÃ¢â‚¬â„¢re still looking at 28 units total. Still looking at price points, with subsidies, starting at $159k and going up to around $259k. All units have upgrade packages as well. We designed our standard build-out to be a fairly high end productÃ¢â‚¬Â¦ quality baseboards, Peerless faucets, brick exteriors, ceramic tile, choice of three types of all-wooden cabinetsÃ¢â‚¬Â¦ so I think it will be a product that will be attractive."

Posted 1 year ago #
rory
NW Short North
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cc wrote >>
No, that is regarding the new financing.
The city would refinance the loan through the Affordable Housing Trust of Columbus and Franklin County, which approved a resolution last Thursday to act as a fiduciary for the project.
That came two months after the trustÃ¢â‚¬â„¢s board approved a $756,000 construction loan for the project.
some more background:
http://www.columbusunderground.com/the-whitney-condos-break-ground-this-summer
The Whitney - Luxury Townhomes
Tony: I think our main demographic are folks who can close on a loan. Hahaha!
"WeÃ¢â‚¬â„¢re still looking at 28 units total. Still looking at price points, with subsidies, starting at $159k and going up to around $259k. All units have upgrade packages as well. We designed our standard build-out to be a fairly high end productÃ¢â‚¬Â¦ quality baseboards, Peerless faucets, brick exteriors, ceramic tile, choice of three types of all-wooden cabinetsÃ¢â‚¬Â¦ so I think it will be a product that will be attractive."

thanks for the clarification!

Posted 1 year ago #
Snarf
Dystopia
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I think Coleman should be the first buyer/occupant!

Posted 1 year ago #