Check out this story in the Telegram. The jist of the story is that the City of Worcester is going to take out a loan for $750,000 to build 11,000 square feet of unfinished space at Union Station. Lets not even get into the cost of nearly $70 per square foot, which seems incredibly high for a build out. Again lets put that aside for now, but I still have two major problems with this.
First off, we simply do not have the money to do this. If we really want these two tenants then lets cut them a deal on the lease and have them do the build out. What happens when we spend the monies for the build-out for the restaurant/night club and there is no business to pay the rent? Why do we think this club will succeed when other have failed? Bottom line is that the City of Worcester should not be in the lending business for commerical build-outs.
Secondly why these two tenants? Maybe if I, or you, knew the City of Worcester was willing to front $750,000 to build out the space other prospective tenants may be interested. In the end, I do not like the idea of the $750,000, but if we are going to do it then it should be a RFP open to everyone.
Same Time Next Year
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It’s been nearly a year since I wrote about the problems that come from
having 11 bosses who are not on the same page about anything, as well as
suggestion...
4 months ago
2 comments:
BIll, I was going to post almost the exact things you just said after I read that article....but I was done fuming & steaming for the day as I watched my tax$$$ being wizzed away down the Blackstone Canal......
...I am clueless re commercail tenant build-outs on per sq ft basis.........but my thinking was the same.............let teh tenant build it out.....thats how it ALWAYS is in the reral world........and if it means reduced rent stream of monthly rents....so be it..........
Additionally.........
1. What are theses lessees paying on a per ft basis for rent
2. City does the build out...... which is a bass-ackwards manner of doing things........what if the build out is partly or whole very tenant specific/unique........and then tenant goes belly up 18 months later......
3. Why doesnt the city do the same (tenant build out) for this airport lease deal........whats good for union station is good for ORH?.....not that 2 wrongs make a right
IN the citys defense......maybe they had no other choice.....and wanted to fill the space at all costs..........b/c other wise we're looking more & more foolish on thsi whole union station project....
As I said the other day.............keep taking all the Washington money with all teh strings attached...and 10 yrs down the road a light bulb goes off in someones head at city hall........that says.....we have no flexibility to do what we want or need to do with our assets.
Wanna buid a bar at Greenhill..........then find out the clubhouse is a Cetfifeid Historic structure..b/c we took some fed'l money yrs ago........and we have to Call McGovern (Havana Jim) just to replace a broken window pane.
Wanna privatize St Johns cemetery....no way ...Geo Washington slept there....before he passed through Shrewsbury center en route to Lexington & concord in 1776
Airport SSDD
Jahn:
Considering that the place is already roughed, the costs seem unreal to me!!!
The owner of Fusion does not exactly have a stellar track history. Why would we invest all this monies in him, not to mention the venture itself (a nightclub/bar).
I will file this in my Skybridge folder.
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