Comments on: Is government the Statler solution? http://punaro.com/index.php/2010/01/derek/is-government-the-statler-solution/ Derek and Amanda got married. Moved to the country. Had a couple of kids. Sun, 20 May 2012 10:32:25 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Derek http://punaro.com/index.php/2010/01/derek/is-government-the-statler-solution/comment-page-1/#comment-114907 Derek Sun, 24 Jan 2010 22:50:12 +0000 http://punaro.com/index.php/?p=1722#comment-114907 Howard, great commentary - thanks! I would rather not see the Statler government-owned in the long term, or at all if that's possible. If another private investor will step in (and it sounds like there may be some interest) all the better. My thoughts here are more along the lines of what happens when a building is foreclosed on and the city ends up with it regardless. I think investment in the buildings it owns rather than fun new pie-in-the projects to get you to look the other way is a better option. Howard, great commentary – thanks! I would rather not see the Statler government-owned in the long term, or at all if that’s possible. If another private investor will step in (and it sounds like there may be some interest) all the better. My thoughts here are more along the lines of what happens when a building is foreclosed on and the city ends up with it regardless. I think investment in the buildings it owns rather than fun new pie-in-the projects to get you to look the other way is a better option.

]]> By: Howard Goldman http://punaro.com/index.php/2010/01/derek/is-government-the-statler-solution/comment-page-1/#comment-114905 Howard Goldman Sun, 24 Jan 2010 21:23:07 +0000 http://punaro.com/index.php/?p=1722#comment-114905 Derek, Great to see you back in the blogging saddle! The recent public debate concerning the Statler has been occurring because the Statler has become the latest pawn in an ongoing war between government growth supporters versus private sector growth supporters. If they grab the Statler, it leaves only one property on Niagara Square that is not government owned. I don't like that. The city states publicly that they are not interested in owning the Statler, yet they quietly maintain an over assessment on the property, and the existing confiscatory property taxes greatly increase the odds that the city may eventually seize the Statler. The city should have reassessed the property down to at least the highest bid at the auction, $1.3 million - immediately and without prompting when the bidder defaulted. This would have demonstrated the city’s genuine desire to save the Statler. The present assessment is $3.5 million, the price that Bashar paid. I would like to see Congressman Higgins courting private investors rather than courting a government takeover of the Statler. He should also be pleading with the city to lower those assessments. You are right; the Statler was a going concern. The most damaging factor has been the popular notion that it requires a total rehab. It has been fine as a going concern for decades and only requires normal maintenance, remodeling, etc. This project can be approached in mini-phases. Simply build to suite over time as more and more tenants show interest. I have no doubt that a private investor will come into the picture any day. That is why the de-privatization crowd is trying to move so fast. Also, many local developers would like to see a quick government take-over as well because they are fearful that a competing private investor will wind up wear the crown. You see, they each have their own monuments and they fear that the Statler will dwarf them all - if allowed to remain private. They apparently would rather see it taken out of the game, so they won’t have to compete against it later. My money is on the Statler as a private enterprise. It will happen and it will be the crown jewel of downtown. Besides, government is the last bubble. I don't want the Statler to have a poor owner. Yours forever bloviating, Howard Derek,

Great to see you back in the blogging saddle!

The recent public debate concerning the Statler has been occurring because the Statler has become the latest pawn in an ongoing war between government growth supporters versus private sector growth supporters. If they grab the Statler, it leaves only one property on Niagara Square that is not government owned. I don’t like that.

The city states publicly that they are not interested in owning the Statler, yet they quietly maintain an over assessment on the property, and the existing confiscatory property taxes greatly increase the odds that the city may eventually seize the Statler. The city should have reassessed the property down to at least the highest bid at the auction, $1.3 million – immediately and without prompting when the bidder defaulted. This would have demonstrated the city’s genuine desire to save the Statler. The present assessment is $3.5 million, the price that Bashar paid.

I would like to see Congressman Higgins courting private investors rather than courting a government takeover of the Statler. He should also be pleading with the city to lower those assessments. You are right; the Statler was a going concern. The most damaging factor has been the popular notion that it requires a total rehab. It has been fine as a going concern for decades and only requires normal maintenance, remodeling, etc. This project can be approached in mini-phases. Simply build to suite over time as more and more tenants show interest.

I have no doubt that a private investor will come into the picture any day. That is why the de-privatization crowd is trying to move so fast. Also, many local developers would like to see a quick government take-over as well because they are fearful that a competing private investor will wind up wear the crown. You see, they each have their own monuments and they fear that the Statler will dwarf them all – if allowed to remain private. They apparently would rather see it taken out of the game, so they won’t have to compete against it later.

My money is on the Statler as a private enterprise. It will happen and it will be the crown jewel of downtown.

Besides, government is the last bubble. I don’t want the Statler to have a poor owner.

Yours forever bloviating,
Howard

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