posted by Mike Madison at 9:11 AM /
My irritation over the media's failure to cover criticism of the Zamagias condo project spilled over to Pittsblog this morning.
UPDATE: Bill Matthews emails to point out the following (and Bill clarifies that this is largely his review of Z's numbers):
Zamagias's own earlier projections included $2.7mm in retail revenue. Suppose, however, that the the retail won't be so good. Assume $2.0mm in retail rather than $2.7mm (approximately 25% less). Take out the proposed TIF ($3.5mm). The projected project return ($5.5mm) becomes $1.3mm. If Zamagias puts up $6.0mm in equity, that's a little better than 20%. Push a bit harder on the retail side, and squeeze harder to save construction costs, and Zamagias should do even better than that. A bank should be willing to lend against those figures, TIF or no TIF.
UPDATE: Bill Matthews emails to point out the following (and Bill clarifies that this is largely his review of Z's numbers):
Zamagias's own earlier projections included $2.7mm in retail revenue. Suppose, however, that the the retail won't be so good. Assume $2.0mm in retail rather than $2.7mm (approximately 25% less). Take out the proposed TIF ($3.5mm). The projected project return ($5.5mm) becomes $1.3mm. If Zamagias puts up $6.0mm in equity, that's a little better than 20%. Push a bit harder on the retail side, and squeeze harder to save construction costs, and Zamagias should do even better than that. A bank should be willing to lend against those figures, TIF or no TIF.
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