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Forums > Rant and Rave > Lee's Summit is RED's new bank!!
 
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Millie

Registered: 03/09/07
Posts: 123

    04/02/09 at 07:38 AM#1
The Lee's Summit City Council is, once again, about to be snookered by RED. 

Check out this article from Wednesday's Lee's Summit Journal  http://www.lsjournal.com/100/story/27644.html - City could loan $9 million to Summit Fair Project.

Another "no risk" plan that has the Lee's Summit taxpayers bailing out a "lifestyle center" that has devolved into Independence Center South.   It's similiar to the Unions showing up at the public hearing, testifying that the construction of Summit Fair would bring jobs to the area, well, it did, just not for local union contractors.

Thank you, Councilmen Rhoads, Swearngin, Spallo and Johnson for thinking of the future implications of this action and standing up for the citizens of Lee's Summit.  And, Councilmen Hallam, Hofmann, Gray, and Cockrell, you still have an opportunity to change your vote and quash this "money grab".

RED made promises to get the Council on board with the Summit Fair Lifestyle concept, agrees to a list of approved/disapproved stores in the Summit Fair center, can't get the approved stores to sign on the dotted line, so they go back and get the council to change the approved/disapproved store list.  They promise to open by X date, and then go back to the Council and get that date changed, blaming MoDot, even though MoDot assured the Council that their part of the work will be done by the required date.

Councilmen Hallam, Hofmann, Gray and Cockrell, stop throwing good money after bad.  It's time to stop bailing out RED and let them sink or swim on their own.  The City has a number of needs/wants that will have to be funded with money other than Summit Fair tax dollars for the next 23 years, thanks to the ill-conceived TIF you gave them, don't make the situation worse.

Millie  
lulu

Registered: 07/06/07
Posts: 24

    04/02/09 at 03:01 PM#2
I watched the meeting on TV.  I about choked on my dinner.  Dan Lowe has never impressed me much and he is all about the city paying for this "lifestyle" center.  They have two stores that are going to open there.  TWO!  Our mayor chimed in with her grandchildren buying her facial cream for her birthday and they had to go all the way to Independence Center to get it and now, with Macy's opening they won't have to go that far to purchase it.  Nine million dollars is a lot of facial cream, don't you think??  Not to mention the original TIF money.  If it is such a good deal why wouldn't a bank give Dan Lowe the money??  Lot's of questions that the city doesn't have answers to and they went ahead and gave him the money.  Kudos to those who voted "no" and to those who voted "yes"  PLLLLLBBBLLLBBBLL.

cheers
marydi

Registered: 05/05/07
Posts: 18

    04/03/09 at 07:42 AM#3

Don't forget...it wasn't only the mayor's wrinkle cream but her perfume too that isn't available in Lee's Summit!!! I just about fell out of my chair over those comments. And to think ...that is the deciding factor in the important decisions for this city!!! I agree that it would be detrimental to have this project sit up there unfinished. (I never agreed with it anyway) But... This is not the answer!!! Thank God Legoland never got started!!!
woops

Registered: 05/03/06
Posts: 546

    04/03/09 at 08:10 PM#4
You sure got that right.

Nogoland would have crushed this city.

Props to you guys for standing up and getting it stopped.

woops
woops

Registered: 05/03/06
Posts: 546

    04/03/09 at 08:46 PM#5

Another bright spot in the recession will be RED’s ability to pick up foreclosed development properties at bargain prices.

“I had two deals submitted to me (on Dec. 19) by a bank that has some projects they’re trying to get rid of,” Lowe said. “Lots of times, banks will write (the purchase price) down to their debt. So if the developer put in 25 percent equity, the bank would sell it to you for 75 percent (of the value).”

Lowe, whose company has pursued projects in 11 states  - December 26, 2008

http://kansascity.bizjournals.com/kansascity/stories/2008/12/29/story11.html



Uh ... why is RED asking for the city to cosign a loan if they have money to "pick up properties at bargain prices"?

woops
woops

Registered: 05/03/06
Posts: 546

    04/03/09 at 09:11 PM#6
The city is on the hook for a $32,000,000.00 TIF, a $20,000,000.00 CID and now a $9,000,000.00 bank loan if this goes down the drain.

I think someone should lose her/his job over this.

Or their City Council seat.

woops
SFinLS

Registered: 08/24/08
Posts: 1

    04/04/09 at 09:14 AM#7
One does wonder about RED’s claims of poverty when it comes to securing the financing to complete Summit Fair. An article from the Kansas City Business Journal of March 13, 2009 (right before RED came pleading to the Lee’s Summit City Council), amplifies the information of the article cited in an earlier post.

“To allow some bargain shopping of its own, RED secured a $200 million equity commitment from a pension fund, Lowe said at the time. But today, RED still is waiting to pull the trigger on its first discount purchase…” (Article Link)

So not only does RED have a $200m funding commitment from a pension fund, they have yet to “pull the trigger” on any purchases. What’s very curious is that Summit Fair doesn’t look like as good a risk to lenders as does taking over distressed property elsewhere.

Perhaps RED should tend to their knitting and look inward for properties in distress. It seems as though their lenders have already identified some in RED’s portfolio for them and one of them is here.

Of course RED likely has ready explanations available for why they can’t tap their own sources but rather expect the taxpayers to bail them out—again. Sadly we have not three but five blind mice (Messerli, Cockrell, Gray, Hofmann and Hallam) who readily accept any rationale to justify the path on which their decisions have put the taxpayers.

SF
woops

Registered: 05/03/06
Posts: 546

    04/04/09 at 09:10 PM#8
It's pretty clear to me that the city has gotten itself in a big hole and have to do what it can to get out.

I was against the TIF suff from the start, I told you that it was a slippery slope to go down. It was a mistake and now the taxpayers are on the hook for more money.

Just think if Nogoland would have been approved.

What makes me sick is that RED has the balls to ask the city for any money at all. City Walk was turned down because they wanted to spend taxpayer money to build a new bridge over 350 hwy, RED is saying now that the over runs are because they had to build a road around Summit Tech which they didn't need for their project.

We can only hope that in the next election that some of the folks who approved this deal are voted out.

woops
woops

Registered: 05/03/06
Posts: 546

    04/04/09 at 09:18 PM#9
Oh yeah ... that TIF was for 23 years.

RED has now only 21 years to pay it back.

52 million plus 9 million is 61 million.

woops
woops

Registered: 05/03/06
Posts: 546

    04/04/09 at 09:27 PM#10
RED Development LLC is gathering the support of Nevada state lawmakers for its plan to seek federal economic stimulus money for a new $80 million to $100 million arena in the Legends at Sparks Marina project.
 
http://kansascity.bizjournals.com/kansascity/stories/2009/02/23/daily35.html

woops
woops

Registered: 05/03/06
Posts: 546

    04/04/09 at 10:37 PM#11
To allow some bargain shopping of its own, RED secured a $200 million equity commitment from a pension fund, Lowe said at the time. But today, RED still is waiting to pull the trigger on its first discount purchase, and the local market has seen only one obvious commercial property steal: the $20.5 million purchase of The Great Mall of the Great Plains in Olathe.
 
http://kansascity.bizjournals.com/kansascity/stories/2009/03/16/focus1.html

woops
woops

Registered: 05/03/06
Posts: 546

    04/04/09 at 10:47 PM#12

One of two key city blocks needed for a major downtown project called CityScape has been purchased by RED Development LLC in Scottsdale.

RED paid $27.5 million for the 2-acre block southeast of Central Avenue and Washington Street. The seller was Block 22 & Associates LC, an Arizona company owned by Emilio Ambasz, a New York architect.

The deal closed March 10, said RED Development marketing vice president John Bacon.

http://phoenix.bizjournals.com/phoenix/stories/2006/03/06/daily65.html

woops
kal

Registered: 04/29/09
Posts: 1

    04/29/09 at 08:37 PM#13
There will be a District 1 Open Forum with our Council members:
Kathy Hofmann and James Hallam.  Both votes to support giving the loan to RED Development. 
It is: saturday, May 2 @ 10am-12pm.  At Lees Summit city hall, Howards Conference Rooms -- 2nd floor.
I think it would be a good time for them to answer questions from the residents of Lees Summit that they are 'representing'.
woops

Registered: 05/03/06
Posts: 546

    05/02/09 at 11:36 PM#14
I am not the kind of guy that would sit back and say I told you so .... but.

Here is a story in the KC Star that talks about Malls in Kansas City.

Just click the link.

Ghost malls are scaring suburbs

       

By KEVIN COLLISON and JOYCE SMITH

The Kansas City Star



http://www.kansascity.com/637/story/1175371.html

woops
marydi

Registered: 05/05/07
Posts: 18

    05/06/09 at 07:21 AM#15

http://www.lsjournal.com/100/story/29562.html They don't want this to be seen as a "bailout" when that is exactly what it is... no matter how they spin it!
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