Tuesday, October 25, 2005

Question #6 Below Answered

6. Speaking of that (historic hotel buildings), whats the Mississippi hotel developer up to? Still trying to work out financing? Construction is started on the Adler expansion, so to avoid having 2 seperate construction periods for that block, they should begin soon on the Mississippi.

The October 24th Council Update had this to say about the Mississippi Hotel development.

Extension of the Mississippi Hotel purchase agreement to J & T Development - On November 18, 2004, the RCPA Development Co. LLC (managed by the City) executed a real estate option contract with J & T Development, LLC for the purchase of a portion of the Mississippi Hotel. J & T Development was selected by the City to redevelop the south wing of the Mississippi Hotel into apartments. It was anticipated that the closing would occur by August 15, 2005. Earlier this spring, the developer's application for 9% tax credits was denied. The developer then structured alternative financing to allow construction to begin later in the fall, but as a result, needed more time to secure the funding. Staff granted an extension until October 15. By early October, the developer had secured the financing for the project. However, the City's surveying and abstract work was not yet complete, in part due to the complexities involved with selling a portion of a single structure. As a result, staff has asked the developer for additional time for the completion of this legal and title work. It is expected that the property will be transferred in early November with construction to begin in December.

So that's good news for future downtown residents, but its never good to hear that the city is the cause of delays. Better delayed then abandoned though.

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