December 23, 2007

City Square June 15, 2008

I was just reading through the agreement between Berkeley and the City of Worcester. Looking at page 38 regarding permit fees, it appears to me that June 15, 2008, may be a very important date in whether City Square happens or not.

If I am reading this correctly, it looks like a 2nd permit fee of $750,000 needs to be paid by that date (the first permit payment of $250,000 has already been made). This $750,000 fee can be avoided if the developer submits a termination notice to the City of Worcester. Not only would they not have to pay the $750,000, but they will get the first payment of $250,000 back in 30 days.

If I am Berkeley based on the tight credit markets and the real estate market, I would stongly be thinking of not submitting the 2nd permit fee of $750,000, terminating the agreement and getting my first payment of $250,000 back. Bottom line is that June 15, 2008 is less then 6 months away.


Anonymous said...

Looks like the the Crown Plaza is for sale.
“The sale of these non-strategic properties will allow us to concentrate operationally on those hotels that will generate the highest returns and produce long-term growth for the company,”


Bill Randell said...