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Originally Posted by BrianTH
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You said it was the Peduto Administration that killed the bid... then you said it was Peduto's appointees to the URA that killed the bid. And that is only partially (or kind of) true. The foundations were not going to let the sale happen and were the directors of the actions taken. But sure, there are certainly levers that the administration pulls to move things in the way they want.
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Originally Posted by BrianTH
Again, huh? The receiver held a traditional bidding process. The hotel developer had the high bid. That could have been the end of the story, but then the politicians got involved.
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I'm saying it was certainly not a traditional situation -- this wasn't some gas station on the corner. And no, it doesn't seem like it would not have been the end of the story. The Foundations were not going to just let the sale to the NY developer happen without a long fight, if necessary. They exerted pressure in any way and in any place they could, including on the developer, to come to a settlement that gave them what they wanted.
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Originally Posted by BrianTH
Are you leaning on the word "simply" here? Of course Peduto et al had arguments for why the hotel developer's plan was a bad one and the foundation's bid should be favored. But local favoritism is almost always wrapped in some sort of rationalization, so again that is business as usual.
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It seemed that you were suggesting that the Peduto Administration just steered the AWC into the foundations' hands since they couldn't win in a competitive bidding war (which is silly) with a small-time outfit. That wasn't the case... and the Administration was not doing the steering. I fully agree that local favoritism is going to be at play, and that we are always going to hear the rationalization for the "home team", when often that rationalization is directly tied to political relationships.
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Originally Posted by BrianTH
I'm not sure we are disagreeing here. As I would put it, Peduto was trying to serve the foundations' interest in taking over ownership of the building despite not being the high bidder. They found AA leaders to support their position, and claimed the AA community was behind them. Other AA leaders actually favored the hotel developer's plan, and to my knowledge there was never any polling or anything to determine which position actually had more support. But I think we agree that Peduto's real goal was to serve the foundations, and the claim he was also serving the AA community was just layered on top of his real concern.
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Yes, I agree with this summation and don't think we're far off overall in that I was getting more to the bold point in your statement above. I know that it was more of a foundation-driven situation than a mayoral administration one... though the mayor's actions and words were certainly made with political ramifications in mind. While I don't think this situation is quite akin to other "favoritism" situations in the city, I do agree that still exists as business as usual and that the mayor should use the office's leverage in a manner that is not business as usual, like you describe.
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Originally Posted by BrianTH
I have seen no evidence to support that view. All the arguments would have worked equally well against any sort of for-profit developer owning the building, and in favor of the foundations alone being the right buyer. So the simplest explanation for the observed behavior was that Peduto and his appointees in the URA wanted to steer ownership to the foundations, and they ultimately got what they wanted.
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Well, it's interesting that there was very little interest in the AWC from experienced real estate/hospitality development professionals, huh? Especially with all of the hotel development going on in the city, downtown in particular. I think that should tell us something right there.
There was heavy skepticism about the developer and their true intentions... initially, because they aren't a developer -- having never developed anything, much less a 200-room hotel built atop an existing building in a prime downtown area; and once the ordeal got underway, because their financing was not sound -- which prompted greater scrutiny of the bidder's history and partner makeup (there was some rather interesting stuff found out... or at least speculated about). The City and County administrations knew that it would be very difficult for the developer to get a major hotel brand to locate on the site without AWC/Foundation ownership of the center and their collaboration, and it became apparent that even after a lot of good lip service, the developer was more interested in the AWC because it was a distressed property (and the money they could make off of it) than they were in actually integrating the AWC into a luxury hotel development.