.

"Plan B" Better Work, Because "Plan A" Doesn't Cut It. But there *Is* No "Plan B"!

Ignore the markets at your own peril. Unless you can use taxpayers $.

 

I sent this letter via e-mail to each member of the BOE, and their Treasurer, who recommends the BOE approve the $5 MILLION tax abatement and land give-away at Lee-Meadowbrook:

-----------------

I guess laws and deadlines don't mean much to some folks.

But no matter who you are, lawyers, politicians, bureaucrats, and even BOE members can't ignore this law:
The Law Of Supply And Demand

And as the developers have acknowledged, they haven't found a trace of evidence to suggest there is any demand for the 71 units at the prices they need in order to pay their bills.

These required rental rates are twice what anybody else gets near Cedar-Lee, and 50% higher than they get near University Circle.

So, before you vote "Yes", you should ask anyone that tells you this is good for the cities and the students, this question:
"What happens when you can't fill the building up at those preposterous rental rates?"

Because that's really Plan A, isn't it?

Here's the info from the developers that I cited previously:

  • The schedule of rents:
    • Studio (0 Bedrooms, 513 - 545 sq. ft.): $950 - $1,035 per month
    • 1 Bedroom (657 sq. ft.): $1,183 - $1,233
    • 1 Bedroom Plus (727 - 787 sq. ft.) $1,286 - $1,352
    • 2 Bedroom (880 - 1,138 sq. ft.) $1,586 - $1,980
    • That approaches $2 per square foot per month.

From page 2 of the revised EIS, here's how the developer "explains" the rents:

"With respect to the rental rates, please note there are no directly comparable properties to which the developer can look to for history. Other buildings that somewhat approximate the conditions and type of this proposed development were analyzed and extrapolated to calculate the rental rates for this property. However, until Meadowbrook-Lee is built there is no way to know what we can actually get in terms of rental rates."

Not for me, thanks. Or my fellow citizens. They would tell you, but nobody has asked.

See you Monday night!

Garry Kanter

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

Garry Kanter November 03, 2012 at 05:39 PM
These same developers over-estimated the market for their Bluestone project on Mayfield. That project is all about "survival" says co-principal, Ken Lurie. And that's why they've only sold 37 units out of the 110 they "projected". Probably based on the same lack of fact-based information that this Lee-Meadowbrook project suffers from.
Garry Kanter November 04, 2012 at 02:54 AM
You can say "Buy-bye" to $5 MILLION of taxpayer $.
Garry Kanter November 04, 2012 at 02:27 PM
$125,000 for a $1 MILLION property?!?! Why the give-away?!?!
michaelschwartz November 05, 2012 at 02:45 AM
Garry, keep up the good work on exposing the BOE for what they are--bought off stooges who are controlled by the Democratice city machine-- at the beck and call of the mayors union buddies and other left leaning groups like the teachers. When the zombie sheeple wake up one day and find their city one big section 8 hovel (like the schools are presently and getting worse), the few folks sounding the alarm will be vindicated, but the way its stand now, the zombie populace is too focused on Dancing with the stars, the Kardashians, and Obama, to realize what is going on or even care.
michaelschwartz November 05, 2012 at 02:48 AM
Oh, and I might add when the city turns into East Cleveland south in the near future, and the sheeple cry out to Obama to come save them, it will be more than interesting to see what happens when they find out he only really liked them for their vote!

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