So the SBJ had an article on The Towers in this week’s edition. Nothing special and nothing new, but it is a good overview of where the project stands.
Headline: “Deadline Looms on Towers Project”
The Details:
-- A month-long stoppage should not have a severe impact on Saca’s schedule. A prolonged stoppage, however, could be BAD. Nobody is certain how long it will take to meet the topping off stipulations in the lease contracts once the projects starts up again.
-- If he has not received the proper financing by May 1, Saca can void the lease contracts. However, Saca and his representatives won’t discuss the possibility of the project failing.
-- The $480 million pledged for the project is impressive, but most of it is not available yet:
- The City’s $11 million dollar subsidy for the hotel is “last in”, meaning it will not be available until the project nears completion.
- Deutche Bank’s loan is STILL contingent on Saca pre-selling half of the units (I thought this requirement had been relaxed a bit. Maybe he needed more than half???). According to Hanley Wood Market Intelligence, 383 units are pre-sold (17 short
). Since sales began, there have been 27 cancellations.
- CalPERS does not write $100 million checks. Funds must be drawn down over time. According to Brad Pacheco of CalPERS, there are “certain criteria Saca had to meet.” (I’m not sure what he means by “had”. Does that mean Saca has met all the criteria necessary to continue making scheduled draw downs? Or, does that mean he only met the criteria for the roughly $9 million (according to reggiesquared) he received so far?) A major backer of the project, Michael McCook, has since left his job as Senior Investment Office for CalPERS. According to media reports, Saca said he is seeking a larger investment from CalPERS, but his spokesman, Eric Rasmusson, counters that claim, saying there is no request for more funds (from CalPERS, I assume).
-- According to Eric Rasmusson,
“This isn’t really a case where the project ran out of money. It’s a matter of stopping and making sure you are on a pathway to success."
-- According to David Hutchinson of Beuhler & Beuhler Structural Engineers, work done at the site does not prohibit something different from being built there. “In the big picture, it would be well-prepared to receive anything else that could come along.”
-- Most importantly, Moe Mohanna bought a unit (Which, if the Towers are built, he will use to house bums, drug dealers and a seedy liquor store. To those who do not like the negative effect his unit has on the Towers, Mohanna will offer it for $800 billion. Outraged, the City will take the unit by ED for $775 billion. Shortly after the court decision, but before the transfer of ownership, there will be a fire in the unit (# 666, by the way). Mohanna will file a grievance against the City saying that the fire increases the value of his unit. Ultimately, he will end up with $885 billion, which he will use to buy up all the property downtown and then do nothing with it. With the extremely valuable 1100 square foot property in the City's hands, Mayor Fargo (yes, she will still be the mayor) will propose 96 (originally, the amount was 69, but religious groups sued the City for $885 billion dollars saying the number was “dirty” and “offensive”) different community get togethers (all catered by Wolfgang Puck) to determine the best use for the unit. After 10 years of charettes, the City will decide to sell the unit to a residential buyer for $885 thousand. Oh yeah, and shortly after that, the Fresno Kings wins it 5th straight NBA Championship).
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That is seriously the funniest thing I've read all week!! Sad, but definitely plausible!
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