Weakening Economy Catches Up
Harrison condo purchases slowing
Developer remains “110% committed” but start has been delayed
Link (NS)
A weak housing market and other complications have slowed the purchase of condominiums in Harrison Square, casting doubt on when construction will begin on the housing and retail section of the downtown project.
But Jim Irwin, project development specialist for Barry Real Estate Cos., said he still expects the building to be largely complete by the time the adjacent baseball stadium opens next year, “and we remain 110 percent committed to the project. We are going to do this.”
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“A year ago, the economy was different,” he said, alluding to a soft housing market that makes some people more reluctant to buy and others unable to sell, denying them the cash they need for a new condo. Problems within the banking industry have also complicated financing for the project, but Irwin said Barry is meeting with other institutions and is confident the necessary funding can be secured.
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“We’ve had incredibly strong bites on the retail space,” Irwin said, adding that two restaurants new to Fort Wayne have signed letters-of-intent to locate in Harrison Square.
Despite the slow pace of firm condo commitments, Irwin said he remains convinced the project ultimately will succeed. “This is going to be terrific for Fort Wayne. There’s no way we’re not going to build this.”
Here It comes, Fort Wayne - Can you say, “It’s all yours, people, we will just take the gift of a brand new stadium - and leave you with the bills!” AND the lease/ bond payments are backed with our General Property Tax Levy! Did we get screwed? Wait and see - we heard all this stuff before - developer Kennedy and Mid Towne Crossing; the original owners of the Downtown Hilton- bailed out by Lincoln Life - do you think Lincoln has any interest in doing this again! How in the heck did Richards and Peters talk Ms. Musgrave into approving the property tax backing? And this weeks events at the police & fire academy at Southtown Centre? Fort Wayne IS a town of dreams (or are they NIGHT-MARES?).
I think there is enough demand to keep this project on track, especially with the hotel property being a sure-fire money maker given its connection to the convention center.
I hate to disagree with the relentless optimism of JBK, but I don’t think this great news. Over the long term however, after/if the housing crisis subsides, demand and value of this type of housing will increase as suburban developments decline. See: subdivision scaling back >> http://www.fortwayne.com/apps/pbcs.dll/article?AID=/JG/20080509/LOCAL/805090344.
I think it will work out to be a good investment eventually, and our community will benefit from the hypothesized catalytic effects. With so many homes on the market right now people just cant afford to dump them at a huge loss.
Brady - Who exactly is making this “good investment”? It sure looks like it is going to fall completely to us Fort Wayne taxpayers(AGAIN!!). Your choice of the word, ” hypothesize” sure fits this boondoggle - defined by Webster as “adoption of an assumption made in order to test its logical consequences”. Boy, does that ever fit!
And Adam - “sure fire money maker”? If that is so, why in the H is the city of Fort Wayne guaranty of a 16% profit for 20 years in the contract? Sure looks like another way to get the “public”(read taxpayers) to foot the bill for a very long time! Adam, have you checked the % of rooms rented at our two downtown hotels recently? And how many “room-nights” per year are going to be rented because of the unnecessary new ballpark? Why don’t you do some independent checking before you spew out the city’s faulty “spin”?
John, my point was that I think it’s a little early to come to such a dire conclusion. The consequences are not haphazardly assumed as you imply, but more like a calculated risk. A hypothesis is an educated guess, and yes it fits, thats why I used it. I think the underlying factors that I mentioned will make this project a good investment (yes, by our community) in the long run. haha, I read this article and immediately knew that a reactionary response was coming from your corner. I just don’t see the benefit of having such a negative outlook at this stage of the game.
I wouldnt consider the Holiday Inn as part of occupancy rates… I know people when visiting downtown who have gotten a room near I69 after seeing the condition of that hotel. A hotel for business travellers near everything in downtown will be sucessful. The only reason for that clause in the contract is that Fort Wayne wanted to ensure that hotel is built. I don’t see how that is bad.