Project X

[GaryP]

Yeah,... we could have 20 properties right off of the river, All with liens on them within a year.

That wouldn't be the end of the world IMO. Banks would sell at a discount and another national developer, this time one that had the coin, would come in and finish the project. It happens on big project; I guess it happens on small projects too.

He's got options right now, doesn't own anything. I'd imagine if the city shoots down the proposal, he's not going to move on those options.

He can't wait for ever to exercise those options. We already have heard about Eric's dilemma, eventually Faust is going to have to make a decision and I dont think he can wait until his deal with the city is finalized.

[PBJ]

That wouldn't be the end of the world IMO. Banks would sell at a discount and another national developer, this time one that had the coin, would come in and finish the project. It happens on big project; I guess it happens on small projects too.

He can't wait for ever to exercise those options. We already have heard about Eric's dilemma, eventually Faust is going to have to make a decision and I dont think he can wait until his deal with the city is finalized.

Yeah, but how easy is it to secure financing (even 20-50 million) when your credit has got liens showing up. I would imagine any lender would see that as a huge red flag

[francishsu]

I assume the key to increasing the value of the land is getting it rezoned to commerical/PUD status, which should provide a boost in value. Does anyone know what's involved in getting the property rezoned?

[worstj]

Are there any pics or drawings of what Project X will look like (besides the crappy pic in the report)?

[tringr]

Are there any pics or drawings of what Project X will look like (besides the crappy pic in the report)?

Only funny mock-ups. No serious "anchor" has been announced. No way to know until then.

[torgo]

I assume the key to increasing the value of the land is getting it rezoned to commerical/PUD status, which should provide a boost in value. Does anyone know what's involved in getting the property rezoned?

The short version is that you apply for a rezoning and go through the process outlined in the Zoning Ordinance. I'll hafta look in to what is needed

But I also assume rezoning the land to commercial would result in a big value increase. Could the developer hold the options until rezoning is approved/denied?

[snoogit]

Mlive.com's forums, man thats starting to be a nightmare. If thats a snap shot of Metro GR, this PR firm is gonna have Troubles with a capital T.

Mlive is NOT a snapshot of any community.

that community is like "Lord of the Flies" over there. throw them a pig and you don't want to know what they do to it.

[Rizzo]

No I know its not a snapshot, are you kidding!? Its full of nonsense. Still I had to throw it out there.

Lord of the flies

[GaryP]

Yeah, but how easy is it to secure financing (even 20-50 million) when your credit has got liens showing up. I would imagine any lender would see that as a huge red flag

I think it would have to be cash

I can't see a bank loaning anything because if he didn't win the RFP his plan and property would be worth a lot less. He must have the first $20M himself or have another partner??

[tringr]

The short version is that you apply for a rezoning and go through the process outlined in the Zoning Ordinance. I'll hafta look in to what is needed

But I also assume rezoning the land to commercial would result in a big value increase. Could the developer hold the options until rezoning is approved/denied?

I'm being lazy, just so you know that upfront. Wouldn't the Request for Letters of Intent state whether or not what type of use would be acceptable? If so, then that is a very, very good indicator of how the city would rezone. Submitting a proposal that follows the city's desired plan is a slam dunk to getting the zoning approved. In fact, the city would probably Have To zone it according to their own guidelines/plans.

[torgo]

I'm being lazy, just so you know that upfront. Wouldn't the Request for Letters of Intent state whether or not what type of use would be acceptable? If so, then that is a very, very good indicator of how the city would rezone. Submitting a proposal that follows the city's desired plan is a slam dunk to getting the zoning approved. In fact, the city would probably Have To zone it according to their own guidelines/plans.

Yah, your right tringr. I'm sure that with a project of this mangitude, the City would be more than willing accomdate the developer when it comes to the rezoning process. I think the only question would be would they rezone to a City Center district? PUD? Commercial? There are potentially several districts to which they could rezone, depending on what exactly the proposed project is. And with this much land, the City could be interested in a conditional rezone, but that would have to be offered by the developer.

[JDrew]

It seems to me, like others have mentioned, that Faust is just a guy with connections. Now, I can't judge him because i know nothing about him, so for all i know he could be very wealthy and have the money to do something of this magnitude. However, all signs point to this not being the case. If someone has liens on their property, this shows financial uncertainty. In addition, SOMEONE has money to throw around. You dont just give a $100,000 deposit to option a property(Mark London's property) and then walk away from the deal on the day of closing if you dont have a substantial amount of money. So we have another "mystery person" or corporation behind this whole thing...but who could it be?!

[MJLO]

ok kids, i've finally caught up with all the new morning posts, interesting where we are going with this, I need to make one clarification,

Did we all miss the part on the reports about Faust when they call him "one of" the projects developers? If you guys are worrying about Fausts credit, There is other money involved in this, Faust is the only face of the project so far. I wouldn't worry about financing so much. The project wouldn't have gotten this far if it were only a smally time financier from LA working on it. David Minkin is involved, so there has to be at least a few other major players.

[GRobserver]

Can I raise a practical question at this point? (cue Stonehenge)

Just for clarification purposes, how is this thread any different than the Media Storm thread?

I keep bouncing back between both, and if I want to post something, I'd like to put it in the right place.

[quoteme3]

if we are to see the reel deal come true

we will see the a team with money

dhr

ie he might want to show up in town later this week with somebody BIG. I cannot believe Grubb Ellis

got suckered into this.

[GRobserver]

if we are to see the reel deal come true

we will see the a team with money

dhr

Are we still doing riddlespeak here?

If so, I'll throw a guess out there.

Multiple references to "A Team".

The A Team aired on... NBC

[torgo]

Can I raise a practical question at this point? (cue Stonehenge)

Just for clarification purposes, how is this thread any different than the Media Storm thread?

I keep bouncing back between both, and if I want to post something, I'd like to put it in the right place.

I think this one is for on-point discussion that could further our research into the nuts and bolts of what's going on...the other topic has devolved into absurdity in some respects (speculation, media reports, etc etc etc).

[GRobserver]

Thanks.

Sorry about my last post then, guess I should have waited for the answer first.

[GRDadof3]

This is a weird bit in the Press:

A Grand Rapids-based spokesman for the developers said Step Strategy, which works with such clients as Sony Pictures, Atlantic Entertainment and the Smithsonian Institution, no longer is involved in the Grand Rapids project.

But Sharona Justman, managing director of Step Strategy Advisors office in Los Angeles, said the company still was working with Faust.

"He's the driving force," she said of Faust.

http://www.mlive.com/news/grpress/index.ss...ll=6&thispage=2

[MiGuyz]

I was just emailed these thoughts from someone closely following the events. Any comments?

i am beginning to put some pieces together. i can see clearly

now...and i don't think the emperor is wearing any clothes.

1. this developer wants options on everything. what does this mean?

no money out of his pocket.

2. london's property hasn't closed. why? because this developer will

not buy anything (point 1 above). he just wants options that he will

then sell later. no money out of his pocket. see point 3.

3. the developer doesn't want to buy city land. he wants a three year

lease agreement so that he can then sell the land later. no money out

of his pocket.

4. woodtv's just talked with the guy. sounds like he has liens on his

property in california. what gives? sounds like no money in his

pockets.

i think that this is turning into a big snow job on the city of gr.

mark my words. i hope they are not true but i am beginning to think that

this is some big bait and switch scheme.

[Rizzo]

Boy the tide is turning, where is the PR? Get out ther folks and do your job, even though were some internet forum, people are starting to talk.

I wish to give this guy a shot, but not for the sake of giving him a shot, all the other cheerleaders think he has "they" behind him.

[TheCityGuy]

Faust may be the guy with the vision or ideas...but the one with the money is the driving force. For all we know, "they" decided to offer Faust to the media as a sacrificial lamb, all the while negotiating with London behind closed doors (haven't heard a whole lot from him since last week).

There is a reason that Faust become known to the media. And my guess is that it's simply to buy time. I have a feeling that the real people behind this want to have every little detail worked out before going public. And I still don't think we'll no the real plan until closer to the RFP deadline.

Faust = buying more time.

[MJLO]

I was just emailed these thoughts from someone closely following the events. Any comments?

i am beginning to put some pieces together. i can see clearly

now...and i don't think the emperor is wearing any clothes.

1. this developer wants options on everything. what does this mean?

no money out of his pocket.

2. london's property hasn't closed. why? because this developer will

not buy anything (point 1 above). he just wants options that he will

then sell later. no money out of his pocket. see point 3.

3. the developer doesn't want to buy city land. he wants a three year

lease agreement so that he can then sell the land later. no money out

of his pocket.

4. woodtv's just talked with the guy. sounds like he has liens on his

property in california. what gives? sounds like no money in his

pockets.

i think that this is turning into a big snow job on the city of gr.

mark my words. i hope they are not true but i am beginning to think that

this is some big bait and switch scheme.

I am starting to feel the same way, but I think we should all sit tight until the reveal more details. If Mr. Faust really is just enamored with Grand Rapids, then maybe he is trying to make this work all on his own. It's just the initial reports, and the quotes from Joel Langlois at the begginning that have me still thinking it really could be something big. But do you guys remember the last "big" out of town Developer that wanted to build something in Grand Rapids. Well he was successful, but I think he's in jail now, and the "big thing" that he built, had to have it's skin refitted, and is still scrutinized, after all the law suits that came out of it in the mid 90's. Does anyone remember what project that was?

pop quiz folks!

[Rizzo]

PT.. OMgosh.

[JDrew]

I am starting to feel the same way, but I think we should all sit tight until the reveal more details. If Mr. Faust really is just enamored with Grand Rapids, then maybe he is trying to make this work all on his own. It's just the initial reports, and the quotes from Joel Langlois at the begginning that have me still thinking it really could be something big. But do you guys remember the last "big" out of town Developer that wanted to build something in Grand Rapids. Well he was successful, but I think he's in jail now, and the "big thing" that he built, had to have it's skin refitted, and is still scrutinized, after all the law suits that came out of it in the mid 90's. Does anyone remember what project that was?

pop quiz folks!

plaza towers?