FORWARD/BACKWARD
Evergreen Group LLC, led by Patrick Kessi of PK Development, has finally produced evidence of financing for the Wizer Block. It's been a long time coming. The development agreement requires proof of secure financing before building permits can be issued, however, that didn't stop the city from issuing permits weeks ago. Week after week, the only word from the Kessi camp had been "we're working on it."
At the LORA meeting last night (October 6 - following the regular City Council meeting) Redevelopment Director, Brant Williams presented another amendment (the 7th) to the development agreement. The developer has secured an equity partner for financing the project and will not be using an instutional lender. Good or bad for LO? If the project goes belly-up, there will be no lender to foreclose. The owners will have to be diligent to make sure this is a successful project for the center of our downtown.
BACKWARD/FORWARD
The development agreement has a clause that requires LORA to make its first payments at closing. But closing can't take place until all contingencies are met, but there is an appeal pending before the State Supreme Court. The developer and equity partner suggested recording the deal but not finalize the agreement until the Supreme Court has made their decision - this could be in about a month. No LORA funds will be given out until the appeal is done.
If the Supreme Court accepts the case it could be as much as 2 years before the case is resolved. They take time to put it on the docket for briefing and then time to decide the case.
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