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[munchymunch]

Duval is dead

1. It is difficult to determine if Duval Development has the capacity to complete the development. No information is given to show previous experience of Duval in any of the comparable projects listed in the proposal. Staff asked you to describe the specific role each of the team members held in the projects depicted. In response, you requested a meeting to “generate confidence” in the project team. The proposal lists only one project with the title “Developer” (the Aqua project in Chicago), and it is not clear that Duval was actually the developer on this project.

2. With respect to the housing developer identified in your proposal, you clarified that Magellan would only serve in an advisory capacity to “verify feasibility of” the residential component. Magellan would not be the housing developer.

3. The proposal’s market study, financial proformas and corporate financial information are incomplete to determine the project’s financial viability. The marketing plan, for instance, simply lists recent real estate and hotel transaction data, and follow up information provided does not provide significant clarification or insight.

4. It is unclear how you will raise the equity shown in the capital proforma since you did not submit corporate financial statements.

5. The information provided on the capital and operating proformas show new assumptions around uses (condominiums) which were not included in the initial proposal. It is unclear from the materials provided how this change in use impacts viability.

from tc journal