Any update? We going to see activity before EOY?
I happened to be standing by Sam Koplar at a recent event. The tower came up in conversation and he said something to the effect of continuing to figure out the project in the context of shifting economics of raw materials and supply chains.
I did not press any further but
I did not press any further but
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Well good news is that building materials are down to pre covid levels
^Lumber almost has. Not much else has. And labor hasn't gotten any cheaper.
And interest rates have increased from 4-4.5% to 6.5-7.0%.MattnSTL wrote: ↑Nov 09, 2022^Lumber almost has. Not much else has. And labor hasn't gotten any cheaper.
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No doubt, these are hard economic times. Until the Fed Open Market Committee stops jacking rates 75bps every month and a half, we're going to have real issues seeing new projects having financing to get operational. I'm remembering how the Roberts Brothers built their awesome tower in Downtown, relying on prepaid raw materials to survive the 2008 collapse, then had to bail out of the project right at completion because they burned all their cash reserves...
Personally, I'm thinking the FOMC will stop 75bps rate hikes soon, maybe even in December going down to just 50bps, but I won't promise that just yet. Rate hikes should likely end by springtime if they stay robust in implementation. I don't see rate decreases for an extended period of time, under perfect scenarios 4Q24 and more likely 2025. Until then, things will get expensive. Now, I'm not saying the Koplar Tower won't happen until then, not at all. I am thinking, however, that things continue to get pricier and shall continue to do so for some time.
Here's to Sam Koplar & Team figuring out this deal; cheers to you guys.
Personally, I'm thinking the FOMC will stop 75bps rate hikes soon, maybe even in December going down to just 50bps, but I won't promise that just yet. Rate hikes should likely end by springtime if they stay robust in implementation. I don't see rate decreases for an extended period of time, under perfect scenarios 4Q24 and more likely 2025. Until then, things will get expensive. Now, I'm not saying the Koplar Tower won't happen until then, not at all. I am thinking, however, that things continue to get pricier and shall continue to do so for some time.
Here's to Sam Koplar & Team figuring out this deal; cheers to you guys.
Albion West End is heading to the LCRA Board on December 13th.
The project scope hasn't changed any, but costs have gone up 10% to $145 Million (was $132 Million). The proposed abatement term is 10 years at 75%. The development team will contribute $1.3 Million to benefit the community as a result of the incentives.
The project scope hasn't changed any, but costs have gone up 10% to $145 Million (was $132 Million). The proposed abatement term is 10 years at 75%. The development team will contribute $1.3 Million to benefit the community as a result of the incentives.
Nailed it "It sounds like the abatement Koplar-Albion are seeking is about 75%. "
I thought this project wasn't seeking incentives. When did they decide to reverse course on that?
Interest rates shifted dramatically while construction prices remained high.PeterXCV wrote:I thought this project wasn't seeking incentives. When did they decide to reverse course on that?
Pihl was ridiculous at the LCRA meeting today. She ranted for 5 minutes straight about a bunch of things and opposes the incentive request.
Michael Gras spoke in support of the project saying he heard the exact opposite of what Pihl's constituents were saying and his people were saying they want the project to happen. I wonder if this will turn into another Armory situation where an outside Alderman introduces the tax abatement bill at the Board of Aldermen or what.
Regarding the $1.3 Million community benefit contribution, Neal Richardson said this will go towards subsidizing rent for City employees and public services workers who would like to live in this building.
LCRA Board advanced the abatement request.
- She complained about what classifies as blight and believes this parking lot was intentionally neglected just so it could be declared blight despite the neighborhood being full of fancy houses and apartments.
- She believes that the SLDC benefit analysis for this project, which scored it at 4/5, is outdated and false. It sounded like McBride said the analysis was done using the new formulas, but his audio cut out for a second.
- She says her constituents oppose the project's incentive request and some oppose the project in general.
- She then complained that she felt it wasn't fair that she was kept in the dark by SLDC staff about the tax incentive being used here. It sounded like Matt McBride corrected her towards the end saying staff did reach out to her.
- She also seemed to stop short of wanting to request that the project start the review process over, but she was cut off by McBride.
Michael Gras spoke in support of the project saying he heard the exact opposite of what Pihl's constituents were saying and his people were saying they want the project to happen. I wonder if this will turn into another Armory situation where an outside Alderman introduces the tax abatement bill at the Board of Aldermen or what.
Regarding the $1.3 Million community benefit contribution, Neal Richardson said this will go towards subsidizing rent for City employees and public services workers who would like to live in this building.
LCRA Board advanced the abatement request.
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^ that last part is odd, that’s not a benefit. That’s a tax write off for the owner
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Obviously the LRCA didn’t care what she had to say cause they know it’s a bunch of nonsense. Pihl seems very anti development.
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I'm a Pihl constituent. I'm ready to vote for DAMN NEAR ANYONE besides her because she hasn't done a GDMF thing but smear crap everywhere.
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Glad it was advanced. Also a constituent of hers and pretty much always frustrated by her positions on development.
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Pihl is a PITA.
Really? Did she say #1 about the parking lot?
Really? Did she say #1 about the parking lot?
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Gras or Browning would be a huge improvement over her. Beyond complaining about new developments of all scopes, she’s also not responsive.
Hit the nail on the head. The big developers and TIFs are one thing, even if we disagree with her, but that she fails to respond to even small developers and homeowners is unacceptable.chriss752 wrote:Gras or Browning would be a huge improvement over her. Beyond complaining about new developments of all scopes, she’s also not responsive.
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