12/19/2006 COW meeting

[Terri]

Jim,

If I remember correctly, Gunny Harboe submitted a proposal to rehab the Bank property prior to the city having to purchase the property as a last resort a number of years ago.  Were you on the zoning board at that time?   Reason I ask is maybe you can shed some light as to why the Harboe Group's proposal was declined. 

At this point in time it is safe to say the entire city is in agreement that something, anything be done to combat what has become of a once beautiful building.  The Harboe Group has completed outstanding projects in the city of Chicago, I doubt they would accept a job that would compromise their workmanship or integrity.

Brian answered your question about the 3.5 million, thanks Brian.

Terri 

[Jim Stillo]

Terri,
Never heard or remember this company having any interest in this site. They have also had two other opportunities to present plans through RFQ's sent by the BDC and chose not to. Both Centrum and Applebee's were quality-reputable applicants, accordind to this board from past post's. They chose to do projects and both basically walked away. Why? Wasn't feasible. After the song and dance, the oohing and the wows, they just wouldn't or couldn't take that risk. You want something to happen, start with a single. After a few singles, then go for the home run. The best approach is the one with the least risk's, the one that would start construction immediately, not after two dozen contingencies are met (TIF Funds,State Funds,Variances,Pre-Sales, etc). Obviously, also a project that would be good for the city and generate revenue. My opinion, if the city chooses a mixed use and decides to give the developer funding and the developer starts construction, what happens if it's not successful.The city is stuck with another white elephant.Maybe a four to six story white elephant.
Jim

[Bear]

Applebee's was a viable player coming into the deal. The city was not a viable
salesperson, the Apple group saw that desperation and asked for more and more
because they knew the city would give them any deal to make it happen. They were
owners of five restaurants, not developers, and obviously not too smart in regards to
site selection as a group working independent of corporate. The deal pooched for many
reasons, the main one being they wanted the property for nothing.

This recent call for bids have separated the men from the boys, the group who offered
750k for the property was laughable at both offering and ability to deliver a high quality
project. I applaud the BDC in bringing high quality players to the table, and eliminating the
"gee I can build a condo" line of credit players from the fray. This development  is huge
for  Berwyn. It is our opportunity to make a statement

Any council member who impedes its fruition will be hung high at noon on said property
by several hundred residents.

And I will bring the tar and feathers for pre-hang warmup.

[Bonster]

no picture?

[renovatorbear]

no picture?

[OakParkSpartan]

Could one of the reasons the people responding  to the RFP is  that there is a different staff in  place at  the BDC?  Professionals want to work with professionals.

Cheers,
Brian

[Bear]

no picture?

No pic...Live wire feed over Comcast, I might make it a pay for view

[Jim Stillo]

Applebee's was a viable player coming into the deal. The city was not a viable
salesperson, the Apple group saw that desperation and asked for more and more
because they knew the city would give them any deal to make it happen. They were
owners of five restaurants, not developers, and obviously not too smart in regards to
site selection as a group working independent of corporate. The deal pooched for many
reasons, the main one being they wanted the property for nothing.

This recent call for bids have separated the men from the boys, the group who offered
750k for the property was laughable at both offering and ability to deliver a high quality
project. I applaud the BDC in bringing high quality players to the table, and eliminating the
"gee I can build a condo" line of credit players from the fray. This development  is huge
for  Berwyn. It is our opportunity to make a statement

Any council member who impedes its fruition will be hung high at noon on said property
by several hundred residents.

And I will bring the tar and feathers for pre-hang warmup.

Bear,
How could the guy who offered $750k be laughable with his offering? If that's the case, is the Harboe project also laughable considering Brain's post about them paying possibly $0.00 to the city?
Don't be so quick to offer praise to the BDC or the City yet. remember there the one's who pushed through the Applebee deal.
They only had four to choose from and recommended three. Hardly a filtering process.In using your analogy, there have been larger MEN on this site then the ones you currently have (Teng, Mid-America, Inland, Centrum), all much larger organizations.
Jim

[Bear]

Come on Jim, only 750 for a block sized parcel in a land locked
community?. What value would you place on an open parcel that size?

[OakParkSpartan]

Jim,

Harboe's group offered $1 million, no further financial considerations from the city.

Cheers,
Brian

[Jim Stillo]

Come on Jim, only 750 for a block sized parcel in a land locked
community?. What value would you place on an open parcel that size?

The x-factor is the bank! No one knows the cost to repair until they start it, It's all assumptions.
So you have $750, $1 mil, and possibly $0. If the guy who offered $750 is out, then you have $1 mil and $0.Sounds like a no brainier except things I discussed before (zoning,market conditions,const. costs,pre-sales, etc.) Value would be based on these factors. So the question is, what type of risk would the city take? In my humble opinion, condo's won't sell at this site. This coming from a guy who has sold more than 1300 properties in Berwyn since 1991. If they agree to it, you watch, that 1 mil offer will change drastically. I've seen it over and over, and so have you - centrum, applebee's, Sedgwick.
Jim

[Terri]

That would be the intent of a contract. 

Terri

[P-PANTHER a/k/a La Pantera]

Maybe I'm confused here, but if an offer is accepted, it thus becomes a binding contract. I would certainly hope that said contract contains a liquidated damages claiuse in case of breach. As such, the City should have some recourse in case of breach.

Or is the offer really not an offer? Are there contingencies in said offer? something doesn't seem right here.

[Terri]

Panther you are right, if the offer is accepted it is a binding contract.  I trust the Attorney's will do a fine job of sorting through the mumbo jumbo legalese. 

Terri

[Bear]

Panther you are right, if the offer is accepted it is a binding contract.  I trust the Attorney's will do a fine job of sorting through the mumbo jumbo legalese. 

Terri

I got a guy...

[Jim Stillo]

That would be the intent of a contract. 

Terri

Maybe I'm confused here, but if an offer is accepted, it thus becomes a binding contract. I would certainly hope that said contract contains a liquidated damages claiuse in case of breach. As such, the City should have some recourse in case of breach.

Or is the offer really not an offer? Are there contingencies in said offer? something doesn't seem right here.

You have no contracts, you have proposals. You rely on your attorney's? What happened with Applebee's agreement? They tied the property up for a year. Maybe you should talk to your city council about damages. How about Centrum? Contracts? Damages?
Wow, maybe you should look into that. What will become of Sedgwick?

Any quality developer will have many contingencies when contracting with a City. Again, the question becomes RISK - will this proposal come to fruition? My answer, not with the way the proposal are being presented. They will be altered. I think I've proven this point  over and over.
Jim

[P-PANTHER a/k/a La Pantera]

Jim,

I'm not sure exactly what you're trying to say, but a PROPOSAL is NOT an OFFER and should not be treated as such.

If Applebee's submitted a PROPOSAL, there's nothing that should have "tied" the property up for a year. I would imagine that the City is free to accept numerous proposals from various parties. Once you get to the CONTRACT stage, though, both parties should have recourse in case of breach.

[Jim Stillo]

Jim,

I'm not sure exactly what you're trying to say, but a PROPOSAL is NOT an OFFER and should not be treated as such.

If Applebee's submitted a PROPOSAL, there's nothing that should have "tied" the property up for a year. I would imagine that the City is free to accept numerous proposals from various parties. Once you get to the CONTRACT stage, though, both parties should have recourse in case of breach.

Their proposals include an offering price.
I agree, it should not have been tied up but was. That's the question-Applebee's/Centrum, Contracts? Now lets go back to City Council and or City Attorney's? Who screwed Up?

[Terri]

Right Jim, at this point they are proposals until one developer is chosen then the contract issues will begin.  But you know that.  

You pulled your proposal.  Why do you seem to think the City will never get a good deal from anyone else?  You should have left your proposal to compete with the others if it was good for the city.  Competition is good.  

Jim, your opinion of each developer (the Bank, Sedgwick, Centrum) is that they are out to cheat the City or whom ever.  I disagree because intent to cheat is a fraud.  You state that a quality developer will have contingencies, that's great as long as those contingencies are agreed upon by both parties.  Then everyone is happy.  

Terri

[Terri]

Jim,

I don't think anyone "screwed up".  Applebee's had a change in management which lead to the change in proposal.  It is not uncommon for a corporation to rethink a proposal when management has changed.

Terri