Laura Street Trio in Trouble? Updated status of six key Downtown projects

[whyisjohngalt]

The article just says $8 million and doesn't mention the parking garage $ needed.  Are they going to proceed without the garage?  If not it seems misleading to separate the real $ requirements.  We can just ride the skyway anyways so at least break ground on one of the buildings without the lis pendens.

[RattlerGator]

Ennis, thank you for the substantive response (Stephen, take notice).

But . . . why are y'all responding as if I'm questioning the need for city involvement? Or the city putting up money? I'm not questioning any of  that and, as I've said, I'm in support of the project.

What has not been addressed up-thread as best as I can tell, however, is this thing of outside entities requiring the city to commit millions of dollars before they will consider going forward with an evaluation to determine whether they will, in fact, do this project.

It may be fairly standard, I don't know, but what is difficult about understanding that direct question?

It's unfortunate to me that some want to drag comparisons with Shad Khan into this. That said, the rather obvious differentiation from these folks with Shad Khan is that Shad has invested millions in Jacksonville -- these outside folks that Atkins has theoretically partnered with, not a penny.

[thelakelander]

^The Detroit and Philly examples both required those respective cities to commit millions before their various projects materialized. In Detroit, the Book Cadillac had been vacant since 1984. To get it going again, the city actually acquired the building before having a developer on board. Renovation didn't happen until 2008. Philly selected to bypass millions in annual property tax revenue (for a full decade) in order to incentivize citywide redevelopment.

[Glue182]

From Change.org

Dec 1, 2015 — SouthEast Group met with the DIA last Tuesday and presented options to build and finance a new parking structure large enough to serve the new tenants, residents and customers of the Laura Street Trio and the Barnett, as well as provide more parking for our growing urban community. As the DIA continues to perform its due diligence, we hope that they will finish their review in time for us to receive approval at the next DIA meeting. We expect to hear good things this week!

The community support of the Barnett and the Trio has been tremendous, and it has been our pleasure to give back as much as possible. As we prepare for construction, the days of Art Walk using the Laura Street Trio lot for its Food Truck Village will be coming to an end.

Please join us on Wednesday, December 2nd for the last Art Walk of the year, and shop local! #weloveartwalk

[sschwartz2929]

So that being said we can take the parking garage bullet out of the gun. Unless someone has an issue with the city giving the developer and its team a plot of underutilized land (Surface Lot across from the marble bank) and some rev grants so they(SEG) can invest 15 million on something that will benefit not only the development but the general public.

[fieldafm]

Still no discussion about an option to consider providing financing as opposed to a commitment to do so. Hmmmmmmmm.

There are many ways to finance commercial real estate, but it is common in bank financing for a term sheet to be presented based on a high level understanding of a deal... followed by a full underwrite in instances like this when a strong equity partner is lined up and a gap in financing exists that would be filled by a public entity.

[whyisjohngalt]

So that being said we can take the parking garage bullet out of the gun. Unless someone has an issue with the city giving the developer and its team a plot of underutilized land (Surface Lot across from the marble bank) and some rev grants so they(SEG) can invest 15 million on something that will benefit not only the development but the general public.

It's a $940,000 plot of land in addition to the increased revenue grant %.  Is the Trio devekipment contigent on getting the parking garage?

Why don't they just buy the land and not make any mortgage payments?

[simms3]

Just saw this, a new Courtyard by Marriott in a renovated building in San Francisco's Union Square neighborhood just opened.

http://www.bizjournals.com/sanfrancisco/blog/2015/12/historic-san-francisco-marriott-union-square.html

Was formerly run as 150 room student housing, now 166 room Courtyard by Marriott.  The pictures make it look very very nice!  Probably an idea of what's in store for the Trio if the ball ever gets rolling.  This reno cost $38M, or roughly $229K/key.

[Wacca Pilatka]

^ I stayed in this one in 2009...another promising portent of what's likely to come for the Trio.

http://www.marriott.com/hotels/travel/phldc-courtyard-philadelphia-downtown/

[thelakelander]

I've stayed in quite a few. They can be quite nice and unique. This was the lobby of a Courtyard in a restored early 20th century office building in DT San Diego from a few back:





http://www.marriott.com/hotels/travel/sancd-courtyard-san-diego-downtown/

[simms3]

^ I stayed in this one in 2009...another promising portent of what's likely to come for the Trio.

http://www.marriott.com/hotels/travel/phldc-courtyard-philadelphia-downtown/

I've stayed in that one.  Not very nice, but stayable.  Good views.  Philly's one of those markets where you can stay in a really nice hotel for cheap cheap, too, I guess depending on the time.

[fsujax]

Nothing beats the grandeur of these older buildings.

[Wacca Pilatka]

That San Diego lobby is pretty spectacular.  Reminds me of the Brown in Louisville.

[whyisjohngalt]

The developer for the DT San Diego hotel was J Street Hospitality:  http://jstreethospitality.com/portfolio/

The have extensive hospitality experience and track record.  Maybe they would lead this project for us?

[RattlerGator]

Still no discussion about an option to consider providing financing as opposed to a commitment to do so. Hmmmmmmmm.

There are many ways to finance commercial real estate, but it is common in bank financing for a term sheet to be presented based on a high level understanding of a deal... followed by a full underwrite in instances like this when a strong equity partner is lined up and a gap in financing exists that would be filled by a public entity.

Thank you for the info, fieldafm.