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October 17, 2007
Village officials seek buyer to help project
Kane County Chronicle (Illinois)
By Brenda Schory
SUGAR GROVE – Village officials hope to find a buyer for 211 acres on which a major development project is planned so that the project can proceed.
Village President Sean Michels said Forest City Enterprises, which proposed a 211-acre commercial and residential development, did not renew its option to buy the land in April.
“We are looking for an investment firm to buy it and hold it, then sell it to Forest City at a later date or take a partnership interest in it when it does go forward,” Michels said. “There is a good possibility of that happening.”
Michels said the property had two owners trying to sell it.
“With the type of company Forest City is, if they buy and hold vacant property, it is not considered a ‘performing asset,’ and that is not looked upon favorably,” Michels said.
NoLandGrab: The last paragraph from the excerpt pretty much explains why Bruce Ratner convinced NY City and NY State to give him such a sweetheart deal:
- NY City is contributing $205 million, which can be used for land acquisition, and
- selling city streets and sidewalks for a grand sum of $1, in addition,
- NY State is using eminent domain, which from the moment a project is announced freezes economic activity and threrefore property values in the affected area, and
- the MTA is selling the development rights for the railyard for less than market value, even though a higher bid was submitted by a rival developer.
It's "not looked upon favorably" to "buy and hold vacant property," unless you are getting a little help from your friends.
And what about them NJ Nets? Certainly, Ratner's NBA franchise is a "performing asset." However, since the team is operating at a loss of tens of millions of dollars each season, it must be burning a hole in the balance sheet and wearing the patience of Ratner family members in Cleveland.
Posted by lumi at October 17, 2007 8:07 AM