urbanSTL

stlien wrote:

John Coctostan wrote: However, state LIHTCs are a very political process and the DED has been slow-playing the HTC program for 2 years now. The timing at DED has now doubled from placed in service to issuance of the state HTCs. This has been a complete turn off to most developers and has hindered some development lately.

Can you give an idea of how the timing has now doubled? For instance, is "placed in service to issuance" now a one year process when previously it was a six month process?

And how does this affect development?

Stlien,

Yes, it now takes roughly one year from when the project incurs its last QRE until the certificate is received by the applicant. I've seen a few projects take almost 2 years from PIS to issuance of the HTCs. While this has never been confirmed, it's been assumed that the order to slow things down came from Nixon. I heard that other incentive programs, like grants, were to be given first priority.

This effects potential redevelopment in a few ways: 1) developers don't like uncertainty. Not only are they unsure of when the certificate will be issued, this gives the impression that the entire program is precarious. 2) A major reason why a certificated state HTC program is successful is because it widens the pool for buyers of the credits. Because the credits can be sold (and are considered property), banks can use them as collateral. Most of the times the state credits are used as collateral for bridge loans. Bridge loans typically have a small term life. By stretching out the time it takes to get the certificates (and pay off/down the b loan), you run the risk of defaulting. Not only that, but you're paying interest each day the bridge loan remains unpaid.

In Minnesota, for example, it typically takes 3-4 months from PIS to issuance of the certificate. To be fair, Missouri's program requires a full audit of the cost certification while Minnesota's does not. However, over the past year or so, that review has been done with the finest-toothed comb one has ever seen.

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Good news in today's Post article:

"Jeff Huggett, the Dominium vice president heading the $118 million project, said during a tour Wednesday that work might be proceeding quickly enough to allow the building to open a bit earlier than December, as projected previously."

Still wish they'd've put a direct connection to the westbound 8th & Pine Metrolink station. Would be cool exiting the train, taking a hallway and entering the Arcade's revived...uh...arcade on my way up to street level. Tooling around Chicago, it's always interesting to see the ways that elevated or buried train stations intermingle with the surrounding buildings. They've got a whole underground network of pedestrian pathways going through buildings, stations and tunnels!

^ I thought there were plans to upgrade the station. I know there are plans to upgrade stations if the TDD passes.

I can't imagine what there is to "upgrade" about 8th & Pine. In my opinion, along with Convention Center, Skinker and Big Bend, it is one of the nicest subway stations in the country outside of Washington D.C.

^ As it relates to direct connection into the Arcade (as used to be the case for Arcade and OPO when buried tracks were industrial/carrier?), I got a twitter response a while back from Paul. Now where'd I put that thing? Hmmm... Ahh, here it is!

Don't know how to embed tweets...

A sneak peek for Arcade insiders - enjoy!

This corner unit has great views!!!!

^
It really is exciting to see.

Ever since the Downtown Now plan was first released back in the late 90s, the OPO District has been a focal point for downtown redevelopment, and now there's just one building left to be rehabbed. The recent additions of Sauce on the Side at the OPO Tower and the gyro place in the old Hamilton Jewelers building have really made a difference. It's just too bad there won't be any retail in the OPO Lofts building.

^ check out the twitter feed of @PubPolWonk; it has some awesome posts the past couple days about redevelopment plans for the Old Post Office (actually never a post office but rather customs house, I believe) in the 60's with pitched battles between different factions.

And I agree it is unfortunate Urban Street is moving towards first-floor residential for the Lofts.... it may be in their best interests financially for the moment but I think they may have underestimated the retail potential for the area... 2014 conditions have given way to better times and 2016 will be even better than 2015 and should radiate further out, especially when the Alverne gets knocked off.

Olive is emerging as a major residential corridor second only to Wash. Ave., with The Marquette, 515 Olive, 720 Olive, The Arcade, The Paul Brown, and The Syndicate (the last three of which may be the largest residential buildings Downtown outside of the Gentry's Landing/Mansion House complex). Hopefully the Chemical, Union Trust, and LaSalle Building join the party soon.

^Yeah, I heard that. Although I'm not crazy about that idea, with Magnolia 1 1/2 blocks away. I'd rather see Union Trust go residential and continue to build out the Olive corridor with apartments. That said, I don't think the Frisco will be anything but B-C office for the foreseeable future.

I went to the tour on Saturday and things are looking good in the building. The one thing that surprised me, was one of the tour guides said that the Artist's Lofts will be 100% leased when the building opens in December. The guide said they always get them 100% leased at the opening and usually have a waiting list. He said that someone else handles the market rate units. That was nice to hear.

Are they actually all artists? Just curious.

arr1274 wrote:I went to the tour on Saturday and things are looking good in the building. The one thing that surprised me, was one of the tour guides said that the Artist's Lofts will be 100% leased when the building opens in December. The guide said they always get them 100% leased at the opening and usually have a waiting list. He said that someone else handles the market rate units. That was nice to hear.

Dominium does an incredible job with pre-leasing. Their Schmidt Artist Lofts in St. Paul (similar size to Arcade) has a waiting list of over 400 people.