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soundslikemold t1_j9mvn7v wrote

Reply to comment by 27thStreet in Committee approves $9 million for troubled Edmondson shopping center, vote goes to Council by Animanialmanac

I noticed that the developers are putting in just over a million in their own money as sponsor equity and get just about that exact number back as a developer fee. No doubt they have profits on the markup coming out of mark ups to the hard and soft costs. So with little skin in the game and grants from the state and city far out sizing what they put in, they get 51% of the equity.

This is a two person company. No employees to run projects. Likely a well connected contractor gets tossed the contract.

I'm likely just jaded, but I think 95% of these "social good" companies are only in it to get rich and could not care less about the community.

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27thStreet t1_j9pqc34 wrote

Did you also note that they have provided no financial history...because there is none.

>Liquidity

>The Company was organized under the Delaware Limited Liability Company Act on August 2, 2022. As of now, we have not yet begun operations other than those associated with general start-up and organizational matters. We have no revenues and very minimal liquid resources (cash). We intend to use the proceeds of this Offering to buy and operate the Project, as described in our business plan, as soon as the Offering closes. We will also use debt (borrow money) to finance a portion of the costs.

>If we cannot raise money in this Offering, or cannot borrow money on the terms we expect, then the Company will probably dissolve.

A Delaware based LLC with no financials and very little skin in the game.

WCGW?

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Animanialmanac OP t1_j9q3nr2 wrote

In your opinion this is a bad option for the neighborhood?

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27thStreet t1_j9qt3d1 wrote

TBH, I am not familiar with what other options were considered. This maybe the best/only one on the table.

I am just reading the tea leaves for red-flags using a healthy amount of personal bias and skepticism earned from living here my whole life.

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Animanialmanac OP t1_j9qxbbo wrote

From what I heard at the meetings there were no other options. This area of Baltimore has been plagued with corruption my whole life, I wouldn’t be surprised if this was graft or a bribe. I’ve heard good things about Councilman Burnett so I hoped something good would come of this. Thank you for your insight.

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Animanialmanac OP t1_j9q3fpf wrote

Thank you for the insight. I’m glad people like you are on here to explain the details. I’m not business minded, I live in Southwest Baltimore and work with residents from the Edmondson Village area. I know this shopping center needs help, I don’t know enough about business to understand the details of this.

I’m your opinion is this something we residents should protest so city council doesn’t approve it?

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soundslikemold t1_j9r60u1 wrote

I really can't say. There are some questions that this raises, but if the alternative is to let the shopping center fail and loose retail for the local community, that's not great. I don't think anyone else is stepping up to revitalize the area.

Getting any investment in many neighborhoods is difficult. Is a less than perfect developer better than no one? Probably, but it is at the cost of 14 million in state and city money. Could that money be better spent to help the community?

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Animanialmanac OP t1_j9rkgne wrote

The shopping center has been failing for at least four decades, most of my adult memory. It’s hard to believe no valid investors were found in all this time. Thank you for your insight.

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