Quote:
Originally Posted by Yume-sama
I'm more inclined to blame the government than the developer, because you best believe the government was the "client" and the developer built to their wishes.
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The developer significantly outbid the other two companies. At the time, people in the industry were pretty shocked by the high bid. Obviously, they thought that they could sell the more expensive condos that resulted from their high bid. They took a huge risk and lost. Unfortunately, the city administration under Mayor Sullivan's leadership, did not do or ignored its due diligence to ensure that the developer could cover the risk. Note that the other two bidders were more established firms that likely could have covered more of the risk.
To be fair, the city has done quite well investing in real estate over the years. In this case, they may have gotten a bit over ambitious but maybe this is just hindsight. Anyway, the losses, if any will be covered by other gains the city has achieved in its property endowment fund. If it is any consolation, I suspect the city, in the end, will fare much better than many other organizations that have been playing the real estate game.
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