The Barron | 43m | 11s | Strategic Group | Gibbs Gage

[Urb]

The above is from 2021. Money up front (reimbursement as cost is incurred) would have vastly accelerated this project. Instead, it has limped forwarded and is taking a rest again. Sigh.

Is it better that the city hasn't cut a cheque yet, but the project failed?

When dealing with Strategic - absolutely. That money would've disappeared faster than a fart in the wind and the project would've still stalled out.

 

[FCC1982]

^Exactly.
The City paying all up front is not a good idea.

Perhaps some type of threshold increments would work.

 

[darwink]

^Exactly.
The City paying all up front is not a good idea.

Perhaps some type of threshold increments would work.

Oh, like reimbursement as costs were incurred

Anyways. The city will continue to city, making choices on how they wish the world to work instead of designing programs and land sales which manage risk while aligning with development and project economics to improve outcomes.

The city needs to take into account the risk of projects not going forward or not going forward fast enough as a risk to the city too.

 

[KensingtonLurker]

I would imagine that at this point Strategic is looking to get rid of the project, likely at a massive loss. At this point in the project, the issues are likely known and I could see a sale with a very small price to someone that has the resources to take over. Basically "we have sunk $x million into it, but it's going to take $2x million to complete and will be worth $2x million at completion and I don't have that, so buy it for a buck"

As an aside, I recall reading an article in the very late 90's to very early 2000's about a guy that bought this building. If I recall correctly, he was an accountant or lawyer and moved into the penthouse with plans to bring the building back. Again, it was a long time ago, but I think this person put in a "stink bid" on an auction and won because they were the only bidder.