March 23, 2005

Yet more riverfront condos stalled

A project seeking to place more riverfront condos in Moline is stalled due to a property owner wanting more than the city is willing to pay.
Yes, I said the city. Not the developer. Evidently, in today's climate, developers expect the city to buy them the property so they can build highly profitable projects.

In other business, City Administrator Lew Steinbrecher said negotiations with developer Riverview Pointe, LLC to build 126 upscale, riverfront condominiums have become stalled because of an impasse over the acquisition cost of the Henry Engineering property on River Drive.
“The city cannot afford, nor will it agree, to pay an excessive amount for property that has been improperly maintained over the years,” he said.

In an updated story today, it was revealed that the developers expected the city taxpayers to front them $7.5 MILLION dollars. The city has already bought the Export Packaging property and were expected to pay a million and a half to buy the Henry Engineering property, demolish the buildings, and clean up the site for the benefit of the condo developers.


At 3/23/2005 3:11 PM, Blogger Fly-on-the-wall said...

Of course developers expect the city to buy the property for them to develop! They've taken a page right out of the playbook of professional sports teams who get cities to pony up mega-millions for sports complexes.

Given that a city is likely to cave in to such an extorti.... er.. request, they'd be stupid not to "ask" it. Of course the really stupid ones are the cities who cut each other's throats "bidding" over developers and teams and companies.

On second thought, why not? It's the taxpayers who foot the bill and they very rarely punish officials who cave into these demands.

Hey, it's how things are done in America in the early 21st century. Get with the program!

(loud hurling noises)


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