Carling, 11 East Bleeding Money: developer asks city for more help

[vicupstate]

CS, Vestcor may be well-connected politically, but they were also QUALIFIED to do the project.   How many OTHER parties can say that? They were/are in the residential apartment ownership/management business.  They were the largest such corporation in Jax and I'd guess one of the biggest in the state.

Banks ARE renegotiating loans right now, so hte city is not acting any differently.

Sometimes the best you can do is MINIMIZE losses.  This is such a case.  They is no better alternative and when the loans were made, no one had a crystal ball to forsee the future.   You make the best decision you can based on the information at the time.  Two landmarks were saved. The Carling would probably be leveled by now, if it had not been rehabbed.        

[fieldafm]

but I still have reservations because no bank is taking this tack!

That is where you are misinformed.  Banks are indeed modifying loans(the Fed is even trying to force banks to forgive principal on mortgages right now, something I fundamentally do not agree with).  In fact, the booming loan modification industry has put plenty of unemployed former mortgage professionals back to work.

There is not much incentive for established real estate companies to invest downtown.  That's why the city has to come in and put forth incentives that spur that private investment(a practice done in all metropolitan areas).  But, that's neither here nor there b/c the debate as to whether the city should or shouldnt be a lender(all cities are, btw) has nothing to do with the cost of tea in China... nor does it have anything to do with whether the city should make the correct decision to modify a loan agreement in a rational manner as they are proposing to do with Vestcor.

[CS Foltz]

Fellow posters .............I must point out City Of Jacksonville is not in the loan business but did make this money available, for whatever reasons, to Vescor. From a business point of view it makes perfect sense to modify said loan to a interest only payment for a limited time. But in the same breath, I have to point out, downtown has not been brought up to speed and until it is, we (the lowly taxpayers)will have interest only payments made to us on  loans totaling $36.5 Million Dollars. If we are lucky, we might get our money back within the time frame specified but until that happens ,I will continue to hold my breath!

[fieldafm]

The city does make loans and it also issues debt.  I appreciate your passion for holding government accountable for tax dollars(there is plenty of room for waste to be eliminated in our fair city), but to deny that the city is not in the loan business is just misinformed.

[SkipnStones]

Which comes first the populace or the community? What do prospective and actual residents need to stay satisfied with current community cultural status or the expectation of cultural status? What is the cultural status of a community?

When you have residences like the Carling and 11 East the persons have invested in a lifestyle. If the surrounding community does not meet the expectations associated with that lifestyle then those who live there have to travel outside their community to meet their expectations. This then becomes incongruous which breeds discontent and the desire to vacate the residence.

These properties are essential to the revitalization of the urban community and they must be allowed to survive until city management, the council and the Mayor assign the revitalization to a entity capable of unifying the pods of grass root entrepreneurs and creators of culture. These then will become a NATURAL integration with not just the Carling and 11 East but many more residents that have the same expectations!

The potential is there, government inefficiency, factions and mismanagement MUST step aside and allow the those that have already begun the work to continue, which will inspire others to participate in the network of revitalization!

[CS Foltz]

Well..............Government should not be in the loan business since they are supposed to be a manager of our tax dollars. JEDC can write all of the blank checks they wish but at some point someone has to produce money in order to back up what checks are being written. With no infrastructure downtown, which should be a private concern, City backed infrastructure is nonexistent so all of the tax incentives are a moot point.....along with the loans! There has to be a vision or a coordinated plan and there is not one! Historical significance should have a bearing but there does not seem to be much in the way of an effort at this end either This, to me, is a classic example of the cart before the horse! If you or I spend more than we have, there are penalty's so once again I have to ask................where do you draw the line?No government can continue  to spend what it does not have and this City is not well off financially.............$58 Million Dollars in the hole and counting kids!

[tufsu1]

Well..............Government should not be in the loan business since they are supposed to be a manager of our tax dollars.

umm....maybe its time for a government/civics class....governments at all levels do loans and bonds.

[mtraininjax]

governments at all levels do loans and bonds.

Yes, but should they? Especially when they know they stand to run deficits for up to 3 years ahead of time?

[tufsu1]

I don't know of any local or state government that is running a deficit...do you?

[Dog Walker]

Aren't local and state governments prohibited by law from running a deficit?