The timelines from the province are unduly strict. Development takes a long time in Winnipeg. Many developers are having this issue. Big and small.
Yes, I noticed that the letters from D Condo and SkyCity are virtually identical in acknowledging the fact that other downtown developers are in the same boat and that CentreVenture's recommendations be extended to them as well.
Syndicated mortgages and a guaranteed return of 8% sounds like something from the movie "the Big Short."
I doubt this moves forward. A $175 M project that needs $14 M in govt support (8% BTW) sounds like a very precarious financial position. Not much room for profit here IMO.
There was an article I was going to post in here, but forgot about it. It's about developments in Toronto. A $1 billion dollar development received somewhere round $175 million in public funds to go ahead. There was another one a bit smaller that received a similar level of funding. In Toronto, where we assume all is glorious and all private money. It's not really like that at all.
It doesn't make much sense that a private condo or office development is going to get public funds in Toronto since the city charges millions in development contributions. It does makes sense for Winnipeg to offer incentives though.
Syndicated mortgages and a guaranteed return of 8% sounds like something from the movie "the Big Short."
I doubt this moves forward. A $175 M project that needs $14 M in govt support (8% BTW) sounds like a very precarious financial position. Not much room for profit here IMO.
Sounds like a Ponzi Scheme.
I dont think fortress cares if it moves forward or not. They take most of their money/profit upfront from the syndicated mortgages in the soft costs. Im sure the executives also had some backroom deal where they worked out an agreement with the original owners of the land to use investor money to purchase the land at a highly inflated value and split the difference. Just my tinfoil hat theory though.
should be noted that the government subsidy skycity is getting is no different than every single other residential project in downtown Winnipeg since 2007. 300 main will also get it....its a big number because there are so many units...every residential development downtown is precarious....generally the TIF is the profit.
Plenty of cities offer incentives for downtown developments. I suspect with the growth fee, this is a roundabout way to offer incentives without losing anything.
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