The Foundry -- READ THIS
The Foundry -- READ THIS
MIT AND COMMUNITY IN SYNC... NOT YET...
YESTERDAY AFTERNOON AT THE FINANCE COMMITTEE MEETING, MIT SAID THEY WOULD LOVE TO HELP REDEVELOP THE FOUNDRY WITH COMMUNITY/NON-PROFITS/ARTS, AS PART OF THEIR GREATER CAMPUS REDEVELOPMENT SCHEME... YOU’VE HEARD IT... MIT WANTS SKIN IN THE GAME... AND THINKS THE COMMUNITY HAS IT RIGHT...
Sorry to all but I misremembered or misunderstood comments at finance committee meeting... MIT has of today, and of what I know, no direct or indirect interest in helping with the foundry...
Now I would think this is really, really good news. And would enable us to really make this happen the way it should, turn the Foundry into a very special place in Cambridge!
I jumped the gun...the comment I referred to were more a suggestion of getting MIT involve... again apologies.... now we need to actually get this done...
It is more important than ever for everyone to participate... Come to meeting Monday August 5th at 5pm, Sullivan Chamber, City Hall....
The rest of this blog is more of my rants... Some good, some bad, some helpful and some useless... I thought I should not even publish them, considering the above... So go ahead at your own peril.. don’t judge... PARTICIPATE!
Lies and corruption or total incompetence?
(Please correct me whenever I m wrong...)
Yesterday afternoon from 4:30 to about 6:00pm the Chair of the finance committee, Marjorie Decker, held a meeting regarding financing options for the Foundry. The meeting was only attended by the women of the city Council, no man of city council were present. The City Manager, Mr Rossi, and his team, the assistant city manager, the city assessor, and the head of cambridge Community Development, Brian Murphy, were to answer questions regarding the finance of the Foundry Building. Mr Brian Murphy was a city councilor and key negotiator for the city, during the Alexandria Real rezoning petition. Yes, that's right, a city councilor is now head of a city department!
The city doesn’t want to sell the building.
Letter from the city manager at last meeting of city council.
Residents are not well informed as to the cost for use and should do their homework prior to lobbying for something
Residents are very well informed, better at math and better educated than ... The residents are not bullies.
Gross Revenue from rent per Year, ?
1. Number of square feet rented: 10,000
Rental Price per year per square foot: $10.00
Gross Revenue from rent per Year: $100,000.00
Rental price per year per square foot: $42.00
Gross Revenue from rent per Year: $420,000.00
2. Number of square feet rented: 40,000
Rental price: $10.00
Gross Revenue: $400,000.00
Rental price: $42.00
Gross Revenue: $1,680,000.00
Lost Revenue (from Real Estate Tax), LR: ~$190,000.00
And Even More Infomartion, Base Scenario:
The city keeps the foundry building. 10,000 sqft are allocated to community space, financed by the city.
Operational cost: $10/sqft
Cost of community space, CCS: $100,000.00
Cost of debt (12.5 Million), CD : $600,000.00
The city leases all the remaining 43,000 sqft to business at market value of ~$42/sqft:
Gross Revenue: $1,806,000.00
Adj Gross Revenue: $1,706,000.00
Adj Gross Revenue: $1,106,000.00
LR: - $190,000.00
Increase in Gross Revenue: $916,000.00
The city leases all the remaining 43,000 sqft to non-profit and artists and city department at value of ~$20/sqft:
Gross Revenue: $860,000.00
Adj Gross Revenue: $760,000.00
Adj Gross Revenue: $160,000.00
Increase In Gross Revenue: - $30,000.00
The city leases all the remaining 43,000 sqft to non-profit and artists at value of ~$10/sqft:
Gross Revenue: $430,000.00
Adj Gross Revenue: $430,000.00
Adj Gross Revenue: -$170,000.00
Increase In Gross Revenue: - $360,000.00
The question to the City Manager should have been:
What exactly would be the total yearly cost, were the city to go ahead with said renovation and management of building? Please give us an itemized list.
Instead we got lots of hypotheticals telling us nothing...
The foundry building, with the 10,000 sqft for community use, is worth between $2.5-$3.5 million.
Derelict residential real estate in East cambridge : $200-$300/sqft therefore value of foundry to residential developer: $8-$12 million. Assessed value of the building by the city
Building Value: $9,311,300
Land Value: $4,453,100
Assessed Value: $13,764,400
Assessed date: 2013. (http://www2.cambridgema.gov/fiscalaffairs/PropertyDetail.cfm?PropertyId=...)
If the land alone is valued at 4.4Million how can the sale value be assessed at 2.5-3.5 million?... Did I misunderstand?
New residential real estate in East Cambridge: ~$580/sqft would mean rehab value of the Foundry: ~$30,000,000.00. Which leaves a residential developer with ample room for renovation, rezoning, I know Mr Raferty is expensive but still, and profit.
Resident are requesting housing non profit and artists for free.
Resident have always asked for financially self sustainable solution and interested non profit have always understood, except if told otherwise by some authority, city councilors, that space would not be free, it would just be affordable.
For Fun and Games...
What if they were correct?
Lets assume the city assessor and cost analysis are correct, the city council negotiations would come into question. If the building is only worth 2.5Million and would cost 12Million to renovate.. How did the city, represented in part by the current head of Community Development, Brian Murphy, have accepted such a deal?... What were they thinking...? How were they acting in the best interest of the city? They got had by Alexandria, in a big way...! Sorry we got had... We need answers/explanations...!
Now the conspiracy theory:
Would this be a sweet deal, a predestined developer will snatch a piece of land for nothing, profit plenty ... sharing the rewards with his ‘friends’. You’ve got to do what you’ve got to do kind of situation...?