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PostJun 20, 2017#126

urban_dilettante wrote: ↑
Jun 19, 2017
 ^ Not sure what to think about that.

Here's what Wikipedia says about Industrial Revenue Bonds:

An industrial revenue bond (IRB) is a unique type of revenue bond organized by a state or local government. The bond issue is sponsored by a government entity but the proceeds are directed to a private, for-profit business.

An IRB differs from traditional government revenue bonds as the bonds are issued on behalf of a private sector business. IRBs are typically used to support a specific project, such as a new manufacturing facility.

The bond issue is created and organized by a sponsoring government, with the proceeds used by the private business. The business is responsible for bond repayment. The sponsoring government holds title to the underlying collateral until the bonds are paid in full. In some cases, this arrangement may provide a federal tax exempt status to the bonds, and many times a property tax exemption on the collateral. The sponsoring government is not responsible for bond repayment and the bonds do not affect the government’s credit rating. IRBs are desired as the private business receives a lower interest rate (due to the bonds tax-exempt status), a property tax exemption, and a long-term, fixed rate financing package. [1]

Bond proceeds may be used for a variety of purposes, including land acquisition, building construction, machinery and equipment, real estate development fees, and the cost of bond issuance.[2]
Also not sure what this condo building has to do with industrial revenue.
Here is more clarification from the article:


"Otis Williams, executive director of LCRA, said the developer would come up with a stream of revenue to pay back the bonds. "It's Chapter 99 sales tax exemption, so it works like a bond, but it's a certificate (the developer) can show to those they are buying equipment from to get a discount," he said. "We chose this because it has minimal impact to the city.""
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PostJun 20, 2017#127

I swear Otis Williams' job is simply to find as many loopholes as possible with tax incentives to give out free money to developers and projects.
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PostJun 20, 2017#128

He knows the positive vibe big-time construction can give a city. It's value can not be quantified, especially during this perilous time in the city of STL.

And make no mistake, this is big-time construction.
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PostJun 20, 2017#129

^ Have to agree, whether it be a signature high rise residential tower in CWE or new Class A office space in downtown it will be worth it for the city to make it happen. Otherwise, you have Clayton CBD/Centene signature development and a lot of small city development while the fight over perception continues. Whereas some signature development in the city along wiht Clayton CBD development balances out the region IMO
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PostJun 21, 2017#130

Agree as well.
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PostJun 21, 2017#131

If I understand this right, the benefit to the developer is about $3M but b/c most of the actual applicable goods bought will not be purchased in Saint Louis City, the impact on the city budget through lost sales tax revenue is much smaller.. so it's a way to shift some subsidy for the project away from the city. Or maybe I got it all wrong. But another Q would be what happens if the developer goes belly up? Is the city responsible for payment to the bond buyers? If so I;m sure the extent of such bonds is looked at by the ratings agencies.
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PostJun 21, 2017#132

STLrainbow wrote: ↑
Jun 21, 2017
 If I understand this right, the benefit to the developer is about $3M but b/c most of the actual applicable goods bought will not be purchased in Saint Louis City, the impact on the city budget through lost sales tax revenue is much smaller.. so it's a way to shift some subsidy for the project away from the city. Or maybe I got it all wrong. But another Q would be what happens if the developer goes belly up? Is the city responsible for payment to the bond buyers? If so I;m sure the extent of such bonds is looked at by the ratings agencies.
Good question, pretty a lot of lawyer details in those agreements but would assume a portion of asset would also revert to the bond holder which in the long run you have something that can generate revenue. Think in terms of Robert bros going belly up after trying to build a high rise tower downtown among other things
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PostJun 22, 2017#133

Hmmm...this is interesting. The Post ran a correction today to an earlier article about One Hundred. The correction states that the tower will be 39 stories, as opposed to the 36 previously reported.
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PostJun 22, 2017#134

Good. Get that height up! While I know height does not equal density, having a few new iconic towers is certainly symbolic and shows that the area is growing!
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PostJun 22, 2017#135

chaifetz10 wrote: ↑
Jun 22, 2017
 Good. Get that height up! While I know height does not equal density, having a few new iconic towers is certainly symbolic and shows that the area is growing!
I agree. Plus it's a good sign that it will actually be a pretty high quality project. One of the first value engineering steps is to reduce the building s.f.
Incentive package aside.....
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PostJun 22, 2017#136

They upped the height?!?! If you count the images rendering, it is 36. To clear things up, they should just make it 40 floors. It would be better to have the height and even number of floors. But can the Post clarify their claim?
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PostJun 22, 2017#137

Yeah, until we hear something official from the developer, I'm gonna continue to think 36 floors.
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PostJun 23, 2017#138

framer wrote: ↑
Jun 22, 2017
 Hmmm...this is interesting. The Post ran a correction today to an earlier article about One Hundred. The correction states that the tower will be 39 stories, as opposed to the 36 previously reported.
Here's the revised story. They've added floors and residences, per this: Proposed 39-story Central West End apartment tower to get sales tax break
The St. Louis Land Clearance for Redevelopment Authority advanced a measure Tuesday to grant the construction tax break for the 39-story, 316-unit apartment tower.
And this is from the initial P-D story back in December, for reference:
A 36-story, strikingly modern apartment tower is expected to rise next year from a Central West End parking lot and top out as the city of St. Louis’ tallest residential building.
Each of its 305 apartments will have a corner living room to increase the amount of interior daylight.
Interestingly, the editor's note says the story was updated to "correct the height of the apartment tower and the length of the original tax abatement request.". I assume by height they mean the number of stories, as the tower height is not mentioned in the revised story.

Assuming this is accurate I'm curious as to how they added the three stories. It would seem the easiest thing to do would be to add another 'tier' (as Studio Gang describes it - or a rack on the magazine rack, so to speak), but each of those is four stories. Simply sticking one of those in the middle of the tower would make it 40 stories, not 39. And the Studio Gang floor plan shows 11 units per floor, but the P-D shows only more 11 apartments are planned in total. Assuming the extra floors are all residential, maybe the extra units are larger, (meaning fewer per floor) with higher ceilings?:




FWIW, Studio Gang's website still has it listed as 36 stories, 385' tall.

-RBB
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PostJun 25, 2017#139

Yeah, a potential few "pent house" units wouldn't surprise me. Especially if they have people who have called "dibs" on them.
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PostJul 01, 2017#140

Looks like they're doing some test drilling on site.
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PostJul 01, 2017#141

framer wrote:Looks like they're doing some test drilling on site.
Forgive me but aren’t they supposed to do that before they propose anything just in case the land can’t hold such weight?
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PostJul 01, 2017#142

chriss752 wrote:
framer wrote:Looks like they're doing some test drilling on site.
Forgive me but aren’t they supposed to do that before they propose anything just in case the land can’t hold such weight?
Not entirely. It depends on the site. Also, they could be drilling for other reasons.


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PostJul 01, 2017#143

framer wrote: ↑
Jul 01, 2017
 Looks like they're doing some test drilling on site.
^That's really good to hear. Any activity is a step in the right direction.
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PostJul 02, 2017#144

chriss752 wrote: ↑
Jul 01, 2017
framer wrote:Looks like they're doing some test drilling on site.
Forgive me but aren’t they supposed to do that before they propose anything just in case the land can’t hold such weight?
A Couple ways you can look at it. From material/subsurface perspective most geology is already known especially close to the surface and in built environments. Maybe it is stiff deep clays before you hit bedrock or say unconsolidated material on top of bedrock close to the surface. Nor does that geology change significantly over a given area. So past past construction, past site work in area and even recent nearby construction such as BJC expansion on top of education resources already gives a wealth of info and resources to work with even before you do the first boring.

The second is foundation design like most building and structural engineering has already tackled a wide varied subsurface conditions and in most cases it becomes what is the most cost efficient foundation design that can support the desired weight. Say a platform supported on friction piles because of deep stiff clays or you drill big holes in the ground until you get to bedrock, add rebar cage and fill with concrete.

Undoubtly at the end of the day you will do the test drilling/borings to confirm the subsurface and tweak or replace the foundatino design if need be. It is also a good sign that things are moving forward as now the developer/owner is putting forth more hard dollars and doing the additional more costly work to finalize design & drawings.
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PostJul 06, 2017#145

Although earlier a user on here said that the project’s construction could begin in the 4th quarter, I see it starting instead in October or around there. Why? Because test drilling is normally the sign of “things are about to get going”. Furthermore, I think it would be easy to start earlier to get the drilling and digging done (or at least started) before the hard freeze of the winter sets in.
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PostJul 06, 2017#146

Not necessarily. While test drilling is usually a good sign that a project is closer to breaking ground, I wouldn't assume it means it is imminent. If any issues are discovered then (as previously discussed above) the foundation may need to be reengineered.
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PostJul 06, 2017#147

Are there any hoops left to jump through, or is this project signed, sealed and delivered?
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PostJul 06, 2017#148

Don't see a building permit app.
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PostJul 06, 2017#149

chriss752 wrote: ↑
Jul 06, 2017
 Although earlier a user on here said that the project’s construction could begin in the 4th quarter, I see it starting instead in October or around there. Why? Because test drilling is normally the sign of “things are about to get going”. Furthermore, I think it would be easy to start earlier to get the drilling and digging done (or at least started) before the hard freeze of the winter sets in.
October is Quarter 4...

Around these parts, hard freezes aren't really an issue for digging a hole in the ground. Equipment for digging a hole and drilling piers will bust through our typical winter ground conditions with ease. It's not like digging with a shovel. Cold is little moreso of an issue for pouring concrete, but there are work arounds. Especially if you are pouring foundations in the ground. Concrete curing is an exothermic reaction, so if you can trap it's heat with insulated tarps you can still pour below freezing. Cold temperatures seem be less and less of an issue in the last decade anyway. Construction companies that are of scale to be able to take on a $130 million contract know how to work through a winter and still proceed. There will be some crappy weather in there, but a wet spring or summer could be more disruptive than a dry and cold winter if you're trying to move dirt.

PostJul 06, 2017#150

And just to add a little more, you can't start without a building permit, as noted above. It's not uncommon for a large project to get a foundation only permit so they can start digging and drilling piers while the design of the above ground portion is being finalized. Watch for that on this one.

More importantly, unless a developer is bringing significant owner equity into the actual construction funding, it's really hard to start a project no matter how complete your construction drawings are without closing on financing. The day the financing closes is when work will start. Doesn't matter how much they want to beat any weather or anything else. Without money, there's no boots on the ground and equipment digging holes.
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