CITY COUNCIL MEETING TONIGHT (LINK)
The important items for Improvers are Public Hearing Item 1 (LINK), New Business Item 3 (10.99MB so not linked here), and New Business Item 4 (LINK).
PUBLIC HEARING ITEM 1: Will the City Council let Nexus Development build 151 condos/apartments on its 6.8 acre lot on Monrovia, or will the Council let the revitalization obstructionists and out of town industrialists kill this off based on arguments that it is not perfect?
In other words, will the council kill off good because good is not perfect?
Ten percent of the Bluffs is no small potatoes
This 6.8 acre lot is not small potatoes. It is approximately 10% of the industrial land on the Westside Bluffs.
If the Council lets this seminal project go forward, this could be the major jump start to transition the Bluffs to their highest and best uses. This project will bring many living souls to the Bluffs. And, living souls are needed on the Bluffs. Remember, all of these people will also want markets, pizza parlors, coffee shops and similar businesses close at hand.
The crux of the matter
The crux of this matter is that the developer would like to move forward with the original plans for 151 condos, but can't get funding for condos in the present real estate market.
Banks don't want to lend to developers building condos or homes right now because so many are remaining empty or are being foreclosed.
However, banks are more likely to lend to developers building apartments, because people have to live somewhere and if they can't afford homes, they will still rent apartments.
So, to get that funding, the developer wants to build these to higher condo standards as originally approved, but be able to rent them as apartments until the market turns around; at which time the developer would like to sell them as condos.
Good Marketing Strategy
This is a pretty good strategy on the part of the developer. What will happen, if this project is approved, is that the developer will probably get funding and begin construction. It will take about three years to complete the project.
In three years, the market may have turned around and the developer can offer the units as condos.
If the market has not turned around, the developer can offer them as apartments.
Then, and this is the beauty of this strategy; if they have to be rented as apartments, the developer will have a building full of potential buyers who will be offered the opportunity to buy their units when the market does turn around.
Many of us who have promoted the revitalization of the Bluffs, and who were on the various committees set up for this purpose, knew all along that the City would have to be flexible, creative and pragmatic to get things done on the Bluffs. This is one of those instances.
The CM PRESS says just do it!
The CM PRESS is in favor of letting the developer move forward with this project even though it isn't perfect. If this is not approved, the area may languish for many more years.
Don't let a desire for perfection kill off the good.
---------------
NEW BUSINESS ITEM 3: This is about putting the TOT (Hotel tax), and Business License Tax on the ballot in November.
NEW BUSINESS ITEM 4: The City Council will review the City's existing Economic Development Strategy.
Both NEW BUSINESS ITEMS 3 & 4 are about raising more money for the City.
# # #
WHAT THE ZELL?
The editor of the Chicago Tribune quit yesterday and so did the publisher of the Los Angeles Times.
Why does this matter to Costa Mesans? Both the Chicago Tribune and the Los Angeles Times are owned by Sam Zell, and the almost-daily Daily Pilot is also owned by Zell. Will we be seeing changes at the almost-daily Daily Pilot next?
# # #
Those are our opinions. Thanks for reading them.
The important items for Improvers are Public Hearing Item 1 (LINK), New Business Item 3 (10.99MB so not linked here), and New Business Item 4 (LINK).
PUBLIC HEARING ITEM 1: Will the City Council let Nexus Development build 151 condos/apartments on its 6.8 acre lot on Monrovia, or will the Council let the revitalization obstructionists and out of town industrialists kill this off based on arguments that it is not perfect?
In other words, will the council kill off good because good is not perfect?
Ten percent of the Bluffs is no small potatoes
This 6.8 acre lot is not small potatoes. It is approximately 10% of the industrial land on the Westside Bluffs.
If the Council lets this seminal project go forward, this could be the major jump start to transition the Bluffs to their highest and best uses. This project will bring many living souls to the Bluffs. And, living souls are needed on the Bluffs. Remember, all of these people will also want markets, pizza parlors, coffee shops and similar businesses close at hand.
The crux of the matter
The crux of this matter is that the developer would like to move forward with the original plans for 151 condos, but can't get funding for condos in the present real estate market.
Banks don't want to lend to developers building condos or homes right now because so many are remaining empty or are being foreclosed.
However, banks are more likely to lend to developers building apartments, because people have to live somewhere and if they can't afford homes, they will still rent apartments.
So, to get that funding, the developer wants to build these to higher condo standards as originally approved, but be able to rent them as apartments until the market turns around; at which time the developer would like to sell them as condos.
Good Marketing Strategy
This is a pretty good strategy on the part of the developer. What will happen, if this project is approved, is that the developer will probably get funding and begin construction. It will take about three years to complete the project.
In three years, the market may have turned around and the developer can offer the units as condos.
If the market has not turned around, the developer can offer them as apartments.
Then, and this is the beauty of this strategy; if they have to be rented as apartments, the developer will have a building full of potential buyers who will be offered the opportunity to buy their units when the market does turn around.
Many of us who have promoted the revitalization of the Bluffs, and who were on the various committees set up for this purpose, knew all along that the City would have to be flexible, creative and pragmatic to get things done on the Bluffs. This is one of those instances.
The CM PRESS says just do it!
The CM PRESS is in favor of letting the developer move forward with this project even though it isn't perfect. If this is not approved, the area may languish for many more years.
Don't let a desire for perfection kill off the good.
---------------
NEW BUSINESS ITEM 3: This is about putting the TOT (Hotel tax), and Business License Tax on the ballot in November.
NEW BUSINESS ITEM 4: The City Council will review the City's existing Economic Development Strategy.
Both NEW BUSINESS ITEMS 3 & 4 are about raising more money for the City.
# # #
WHAT THE ZELL?
The editor of the Chicago Tribune quit yesterday and so did the publisher of the Los Angeles Times.
Why does this matter to Costa Mesans? Both the Chicago Tribune and the Los Angeles Times are owned by Sam Zell, and the almost-daily Daily Pilot is also owned by Zell. Will we be seeing changes at the almost-daily Daily Pilot next?
# # #
Those are our opinions. Thanks for reading them.
