From the latest ELi story on the Project Formerly Known As City Center II, it appears DRW, the big-league Chicago day-trader, is going to settle with the former developer, in order to put an end to litigation and get those $10 million legacy MBT credits and brownfield money.
The MBT credits and 2008 brownfield were assigned to the lender and there is no evidence they were ever returned to PDIG/CCTP in the Cuyahoga settlement. There is also no evidence the lender assigned the credits to DRW, and if DRW failed to get an assignment in conjunction with buying the Sheriff’s deeds that is it’s own fault.
The MBT credit was from July 2008 and the maximum extension for completion ended July 2018. There is a claim there was an extension in 2011 with a new 10 year drop dead date, but I have not seen the document and doubt there is any legal basis, since there was no development agreement at that time. Also the credit was based on building a publicly owned performing arts theater.
The previous DRW attempt claimed a need for the MBT credit to pay for underground parking which is not part of new plan. What is the financial rationale for both an MBT credit and brownfield tax diversion? Asking state and local taxpayers to bail out a wealthy corporation for speculating on the Sheriff’s deeds?
Council can simply vote no on the brownfield and make some effort to regain the moral high ground instead of indirectly benefiting someone with whom city connections has destroyed East Lansing’s reputation. There is no financial justification for the city doing a brownfield for this project and if DRW walks away eventually someone will build on the site when there is a market.
– Eliot Singer
