City Council Press

I had one other thought this morning about last evening’s update.  If financing is difficult to arrange for a large company such as Barry Real Estate, imagine what it is like for the private individual wanting to purchase a $150,000 to $360,000 condominium unit.

Press clippings from last night’s City Council meeting.  I don’t mean to be so picky about things, but it continually amazes me that the press doesn’t seem to care much for accuracy sometimes.  Or maybe I’m just too literal for my own good.  Anyways, my thoughts on a few of the following articles.

Where Have All The Back-Slapping Bankers Gone? (Fort Wayne Politics)
From Council (What’s Going Down(town)
City Council Hears Update on Harrison Square (INC)

Clicking on the above link shows INC is STILL using the 1st generation site rendering for Harrison Square.  They also mispelled Chris Schoen’s last name – “Chris Shane”.

The real estate group hoped to have sold at least 50-percent of the condos by now and leased out fifty percent of the retail space, but that still hasn’t been achieved.

I don’t remember them saying this in last night’s meeting.  Schoen had said they’d hoped they’d be further along, but no definite projections were given last night, or ever.  This 50% is related to the threshold needed, they now feel, to obtain favorable financing on the project.

We asked the developer about the rumor of the condo projects becoming luxury apartments instead.  Chris Shane, ” this is a condominium project and it was envisioned that way from day one!”

This rumor died a very quick death last week – and it wasn’t really a rumor.  In fact, if memory serves, it was INC that stirred up the whole controversy by asking Mayor Tom Henry about it.

Developers also said that they are in the process of doing some marketing and special events to draw more potential buyers

Schoen said they are in the process of putting it together yet, it has not started.

Housing Slump Taking Toll On Harrison Square (WANE)

 Only five of the sixty-seven are officially spoken for…

Hmmmm, 67?  They must have decided to add five more since last night’s meeting.

Plus, it’s had trouble getting banks to lend money for the condos’ construction, so it’s also reworking its approach on that.

I don’t care for the inference there.  I didn’t hear him say banks were refusing to lend money to Barry Real Estate.  He stated that they have been in negotiations several times and for one reason or another, things fell through.

Builders to city: There’ll be condos (JG)

Good ol’ Ben Lanka.  We don’t always see eye-to-eye on how much he covers of things, or even his approach at times, but I’ve always found him to give an honest and straight-forward accounting of the proceedings.

Condos coming, builders promise (NS)

And he hit an optimistic note in his presentation. He said 50 people have made reservations to keep the right to buy a condo or have expressed strong interest in the downtown development.

Not exactly.  What he said was that 50 people are still interested.  Some of those have come into the office of late and instead of putting them through the reservations system, they are trying to convert them directly into sales.

No matter how sales go, he said, “We are going to try to proceed with the financing somewhat immediately.” He said arranging financing likely will be a 45- to 60-day process.

But in that 45-60 day process, they will also be having conversations about how quickly the project can be built, and also finalize the condominium and retail leases – all this (as well as the financing) simultaneously.

Thanks to What’s Going Down(Town) for the list of urls.

3 COMMENTS

  1. Steve – Chris Schoen did mention last night that they originally wanted 70% of the condos under contract before they started building. He went on to say that they now wanted “a little over 50% before proceeding. He did say that a number of banks, or other potential financers, did not make any offer to their request for funds. Isn’t that the same as “turning a request down”?
    All in all, you heard what you wanted to here and I hear what I have ,all along, expected to hear – IT IS JUST NOT A SALEABLE PROJECT!!!! It will only work with a much larger input of public money – be it from Fort Wayne, Allen County, the State of Indiana, or from some magic source of $1 million bills, which is at present unknown.

  2. No, John, he did not mention, “…they originally wanted 70% of the condos under contract before they started building.” The only time 70 came out of his mouth was when he’d been asked how many reservations were taken last November. He responded 70-72. I have listened to the mp3 file twice now. If you can point out to me where he says they orignally wanted 70% sold by this time, do so – give me the time mark.

    As to your other point, read what I wrote again – I don’t care for the inference one draws when reading it which was my point. What the reporter wrote was true, however the point I tried to make, unsuccessfully, is that to be fair and balanced, you also need to report what was said in response to the financing situation – that it will get done.

    You wrote: “All in all, you heard what you wanted to here and I hear what I have ,all along, expected to hear…” And I guess I’d add that you heard what you wanted as well. I’d be very careful not to start dancing on the project’s grave yet, John. The project has not failed – it hasn’t been the stunning success some thought it would be at this point, but it’s still alive and kicking. Dial back the rhetoric and give the darn thing a chance to succeed.

  3. John, just to respond to your email you sent me about why I had blocked your comments, I did not “block” your comment. As I stated in my email, I am unable to approve comments via my cell phone’s internet service which is about the only thing I’ve had continual access to the last 24 hours. If I do not approve a comment, I will notify the person via an email.

    But part of the reason it wasn’t approved until tonight, which I failed to mention in the email, also deals with the fact that I wanted to check my notes and the mp3 file for accuracy. I think this perfectly well within my rights as owner of this blog.

    I do have a life outside of blogging and contrary to what someone told me last week, I don’t spend all my time at home on the computer.

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