11-30-81 Committee of the Whole - Laserfiche WebLink

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Mr. Brademas: I think the new tax law would certainly give us an upward boost. I do think it will be tough but I do believe we have a good opportunity to overcome that and in 18 months from now can have a building that everyone can be proud of, and particularly Roger Parent. Mr. Voorde: Mr. Radecki , you have been asking to speak. Mr. Radecki : The record states that on July 31 , Jon Hunt came to our board meeting and asked that a committee be set by Mr. Oxian, Gaylen Allsop, the Mayor, etc. Their initial proposal was that we would match their $200 ,000 with the original amount. Their was some concern about guaranteeing our portion ($100,000) in a two and a half million dollar project. We waited for negotiations to take place and on December 18 of the same year Mr. Alisop indicated that communications had broken down with the city. We do follow standards historically. Mr. Voorde: The chair recognizes Mr. Raker. Mr. Raker : It was brought to everyone 's attention that I have some liens against the building which involved a project that I did myself. I realized that I could not do a project by myself because of the high interest rates. I made my presentation to the Redevelopment Commission and I expressed that I was going to have a team of people who could do this project for me so that I could not get into another situation as I had done previously, and all these people were local people. I had the idea of office condominiums. They would buy their offices and then own them. The office condominium idea is new in the United States. My complaint is that the City had said that we could prove to them that we could sell them this idea and come back with 40% of the funds in a 60 to 90 day deal , then we could sell the project. Since no advertising is allowed, I went door to door to visit executives in this area and a lot of offices I was unable to be received, but I brought back letters for funding of 60% of the building, which proved that 60% of the people had intent on purchasing a portion of the building space. It was because of this interest that I felt I could go forward on this project. At one time earlier in a meeting held by the Redevelopment Commission that $200,000 was not available for use, and I assumed that it was federal money. I felt that I could go ahead without that money because I had $150 ,000 but was told that it was not enough. Rehabing a 50 year old building, the new tax laws that take effect the first year, the 15 year accellerated depreciation, and your 20% dollar for dollar in tax credit return for the first year is really something that people really look at; it makes it really lucrative. Mr. Voorde: Mr. Raker I hate to interrupt but you are in areas that we are unfamiliar with, but Mr. McMahon has already explained to us, and that your proposal was the most intriguing in concept and had the sole negotiating posture with the redevelopment commission, but at some point in time, for your failure to do things in a timely manner, your proposal was ultimately washed out. Conceptually it may have been good but you must realize this. Mr. Raker : I think that when you are puttting these kind of packages together you don' t use your own money, and you can' t put together a two and a half million dollar project in two weeks. I know I had ample time from my original conception up to when I was supposed to come up with money. Through some friends I found out that the proposals had been denied for rehabbing the Odd Fellows Building, and that it would be demolished (would be acceptina