DeBaliviere wrote:Whoop-de-freaking-do.
We're about to lose two major law firms that employ 1,000 people and lease over 300,000 sf of space.
metzgda wrote:DeBaliviere wrote:Whoop-de-freaking-do.
We're about to lose two major law firms that employ 1,000 people and lease over 300,000 sf of space.
Pehaps now that a development agreement is finalized, the city can at least sway one of these law firms to stay downtown. Apparently one is still considering Ballpark Village.
JMedwick wrote:Exactly. Given that both Brown and Centene seem to be using their clout as drawing cards to reel in major law-firm tenants, if Stifel is really interested in having a major presence in the BPV, it would be interesting to see if it couldn't clout to bring such a firm downtown.
DeBaliviere wrote:JMedwick wrote:Exactly. Given that both Brown and Centene seem to be using their clout as drawing cards to reel in major law-firm tenants, if Stifel is really interested in having a major presence in the BPV, it would be interesting to see if it couldn't clout to bring such a firm downtown.
I hope so.
Stifel is a Thompson Coburn client.
A major difference in the revised agreement is that Cordish wants to eliminate the residential component from its $387 million first phase of construction and save it for a later date when market conditions improve. Citing tight credit markets and a battered housing market, DeWitt said a new condominium tower does not make sense right now.
Cordish officials have always been careful to call the housing market in downtown St. Louis an emerging one, noting that no new residential high-rise projects have been built downtown in decades. In an April 18, 2006, memo to city officials, Cordish Director of Finance Jason Epstein said that the final project would change to meet evolving market conditions.
Slay has long pushed for condominiums or apartments as part of the plan, but is now willing to give Cordish more flexibility.
stlbluejay wrote:Couple thoughts:
1) I hope an agreement has actually been signed (the Business Journal says that the news conference will discuss an agreement "in principle" that has been reached.
2) If I am Cordish, why give up govt guarantees on the bonds? That seems to be a lot to give up. My only guess is that Cordish has the commercial tenants lined up and ready to go (at least to the extent that they feel the govt backing is unnecessary.
steve wrote:Um, what about the Roberts Bros. Tower? Why do people act like it doesn't exist??
According to those close to the negotiations, the city of St. Louis held firm to its position to not guarantee the bonds for the project -- a key point developer Cordish Co. sought -- or use general revenue funds for the project. Cordish has received guarantees on bonds for many of its mixed-use projects across the country, including its Power and Light District in Kansas City.
Dewitt deliversTake the Ball Park Lofts at Cupples Station, within steps of Busch Stadium. A few weeks ago, well into the housing bust, developer Blue Urban staged what company President Kevin McGowan likes to call an "NFL-style draft" for sale of condos on the fifth and sixth floors of Building 9, one of three the company is renovating there.
All 36 units sold in 40 minutes. "That's about $9 million worth of condos," McGowan said.
...
McGowan knows location drove sales at Building 9. "If this wasn't across from the ballpark, we wouldn't even propose a condo project there right now," he said. "We'd do apartments."
Ballpark Village: It's in the cardsP-D: Will the project be recognizable compared to its original rendering?
BDJ: I think it will be recognizable from the original vision. I don't think residential will be Phase I. It will be a second phase. I hope the residential market comes back to where it's viable.
Everyone gave up something in the deal. Cordish did not get the city-guaranteed financing on the project. City officials have always pushed for new residential units to be a part of the deal, but relented. The Cardinals unquestionably want to polish the image of the organization, which has taken a P.R. beating as no progress has been made on the site.
See this 1996 St. Louis Business Journal article for reference.Moorlander wrote:What does this mean exactly???According to those close to the negotiations, the city of St. Louis held firm to its position to not guarantee the bonds for the project -- a key point developer Cordish Co. sought -- or use general revenue funds for the project. Cordish has received guarantees on bonds for many of its mixed-use projects across the country, including its Power and Light District in Kansas City.
The city has a large stake in keeping St. Louis Marketplace alive. Unlike many TIF deals, the $15 million in bonds for St. Louis Marketplace are backed by the city. This means that if the shopping center does not generate sufficient taxes to meet the bond payments, the city must back up the shortfall. According to city officials, the debt service on the city-backed bonds is current.
Maybe because they have no intention of building a $650 million development any more? They will instead simply build a project, the size of which makes the added risk of no guarantees acceptable.stlbluejay wrote:2) If I am Cordish, why give up govt guarantees on the bonds? That seems to be a lot to give up. My only guess is that Cordish has the commercial tenants lined up and ready to go (at least to the extent that they feel the govt backing is unnecessary.
They do? What, are they going to pave the parking lot with gold?the Business Journal wrote:Plans still call for a $650 million multi-phased, mixed-use development similar to that proposed before Centene Corp. announced last September it would purchase a portion of the site and build a new headquarters there, according to Rainford and Cardinals President Bill DeWitt III.
How do you know it will be "100's of millions of dollars" of investment?Moorlander wrote:At first this was to be a fun and exciting project. Cordish/Cardinals/City Hall finally make the big announcement and it's "Woopty- Do"!
Shouldn't we be celebrating the announcement of the investment of 100's of millions of dollars in the dowtown core?
What highrises?markofucity wrote:and you have to admit that the views from that stadium will be impressive with a few highrises sprouting up next to the outfield.
If by "people" you mean Cordish, then it's because they don't want to build residential. You do have to admit though, that you can't exactly call the Roberts Tower a market-driven project. I'm sure the loan-to-value ratio on their financing was pretty low. IOW, the Roberts Tower wouldn't have happened if they hadn't put tens of millions of their own dollars on the line.steve wrote:Um, what about the Roberts Bros. Tower? Why do people act like it doesn't exist??Cordish officials have always been careful to call the housing market in downtown St. Louis an emerging one, noting that no new residential high-rise projects have been built downtown in decades.
jlblues wrote:How do you know it will be "100's of millions of dollars" of investment?Moorlander wrote:At first this was to be a fun and exciting project. Cordish/Cardinals/City Hall finally make the big announcement and it's "Woopty- Do"!
Shouldn't we be celebrating the announcement of the investment of 100's of millions of dollars in the dowtown core?
A spokesman for St. Louis Mayor Francis Slay said today that Ballpark Village developers would have greater flexibility in deciding the size of the project under a revised plan.
A deal between the city and developers is very close, said Jeff Rainford, chief of staff for Mayor Francis Slay. An announcement could come as soon as next week, he said.
The eight-acre mixed-use development covering seven blocks originally was to include office and retail/entertainment space as well as a possible residential component. That mix likely will change under the new agreement, but specific details have not been released.
The developers, the St. Louis Cardinals and Baltimore-based Cordish Co., would not be tied to specific development targets and could take market conditions into account in deciding the scope of the project, Rainford said. Public subsidies would change with the size of the development.
"The way it could work, is they build a smaller project with a smaller subsidy or a larger one with larger incentives on a pro-rated basis," Rainford said.
The original plan called for the $387 million first phase of Ballpark Village to include 360,000 square feet of retail, 100,000 square feet of offices and an optional residential portion. The developers were to receive about $115 million in local and state tax breaks and subsidies.
The proposed deal allows the Cardinals and Cordish to build between 100,000 square feet and 750,000 square feet of office space. The retail part is uncertain, and residential would remain optional.
The new agreement would have to be approved by several groups, including the Board of Aldermen. The process could take eight to 10 months, Rainford said.
If approved, ground breaking could be early 2009
Did you read the article you just quoted?Moorlander wrote:i'm sorry, what's your take? In your opinion how many $ of investment is it then?jlblues wrote:How do you know it will be "100's of millions of dollars" of investment?Moorlander wrote:At first this was to be a fun and exciting project. Cordish/Cardinals/City Hall finally make the big announcement and it's "Woopty- Do"!
Shouldn't we be celebrating the announcement of the investment of 100's of millions of dollars in the dowtown core?
1) Cordish/Cardinals are only committed to building a $60 million project. This new agreement does not seem to have any increased level of commitment.A spokesman for St. Louis Mayor Francis Slay said today that Ballpark Village developers would have greater flexibility in deciding the size of the project under a revised plan.
The eight-acre mixed-use development covering seven blocks originally was to include office and retail/entertainment space as well as a possible residential component. That mix likely will change under the new agreement, but specific details have not been released.
The developers, the St. Louis Cardinals and Baltimore-based Cordish Co., would not be tied to specific development targets and could take market conditions into account in deciding the scope of the project, Rainford said. Public subsidies would change with the size of the development.
"The way it could work, is they build a smaller project with a smaller subsidy or a larger one with larger incentives on a pro-rated basis," Rainford said.
The original plan called for the $387 million first phase of Ballpark Village to include 360,000 square feet of retail, 100,000 square feet of offices and an optional residential portion. The developers were to receive about $115 million in local and state tax breaks and subsidies.
The proposed deal allows the Cardinals and Cordish to build between 100,000 square feet and 750,000 square feet of office space. The retail part is uncertain, and residential would remain optional.
