Case Closed on Entrada?
With all that has been happening with the NLRB, I forgot about Bill Levy going to Bankruptcy Court this week with what Nick Welsh at The Independent called an "intricately crafted house of cards (which) came crashing quietly down". Mountain Funding, whom Levy owed $42 million, left Bankruptcy Court with the project and its permits.
So, why does Levy get to spend $11 million of his investor's funds without permission and get $60,000 per month in "management fees" when he couldn't produce a revenue producing property?. Because they are "management fees", it is not "stealing"? Sounds so Enron-ish to me...
While lives have been greatly affected by his inability to produce La Entrada, the community is also at a loss. It may not have a black hole -- but it sure feels like it did for several years at the corner of Carrillo and Chapala. The waterfront's own Carrillo Hotel now will likely need an even more dense project to make up for lost time -- City Hall will hopefully realize that they don't owe anyone anything for bad business decisions -- even if one of them might have been their own.
So, why does Levy get to spend $11 million of his investor's funds without permission and get $60,000 per month in "management fees" when he couldn't produce a revenue producing property?. Because they are "management fees", it is not "stealing"? Sounds so Enron-ish to me...
While lives have been greatly affected by his inability to produce La Entrada, the community is also at a loss. It may not have a black hole -- but it sure feels like it did for several years at the corner of Carrillo and Chapala. The waterfront's own Carrillo Hotel now will likely need an even more dense project to make up for lost time -- City Hall will hopefully realize that they don't owe anyone anything for bad business decisions -- even if one of them might have been their own.
posted by Sara De la Guerra | 1/13/2007 02:44:00 AM
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8 Comments:
That frees up this area to provide for the homeless. Let's see if the City does the right thing by them.
Poor Billy. Goes bankrupt, but winds up with over $7 million in a ten year period ($60,000/month "management fees"). Only losers are the investors. I sure hope those city council members that voted for the project were investors and big losers.
RAE
Good spot for more housing.
IF you could read you would know that the Entrada is under construction and there is no need for more density. But for Levy's debt on the property this project is a home run.
Do the math - 60 private residetnce clubs at $60,000 - 100,000 per week times 52 weeks = a lot -
Levy was in the way - now he is gone and the deal will go forward.
Ah, $60K a week. Santa Barbara's idea of affordable housing.
When will we see the list of investors ( available at the Bankruptcy Court?) to learn who was motivated to behind the scene prop up Levy's project over these many years?
Ah, $60K a week. Santa Barbara's idea of affordable housing.
No Santa Barbara's idea of a huge tax revenue producer with very little impact to pay for Santa Barbara's affordable housing - Santa Barbara should get more than $1 million each year from this thing. Better than other tax revenue options to keep the city employes in living wages
That living wage better be $100K per year, or it ain't a living wage.
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