UC bails out Calhoun project developer

[Lobot]

http://news.enquirer.com/apps/pbcs.dll/article?AID=/20071205/NEWS01/312050049

Total owed to UC by CHCURC is up to $33 million. Your endowment at work folks.

['nati streets]

Fact is if they ever want the site south of the UP Apartments to be developed they had to do it... Hopefully and I know it will take a number of years they will get some of that money back from UP rents.

[CincyBeerCo]

But in their defense, CHCURC would not have gotten themselves into such debt without the underlying promise (apparently no contract though) of UC being a major part of this project. UC pulled themselves out and halted the development. Not saying I blame them for pulling out, as the financial models didn't make sense, and UC felt that it would be a bad business decision in its current form. But....CHCURC (an obviously much smaller entity that UC) had jumped full bore into this (making investment and accumulating debt) as if UC would be seeing it through.

As someone that has seen this (Clifton Heights) area develop over the last 30 (almost) years, it is painfull to see the area b/w Calhoun and McMillan lay vacant w/ so much potential (any buildings over 7 stories tall would have some of the best views in the city, and retailers have a built in consumer base). I was very dissapointed when UC stopped their involvment in the process, but I hope they can rework the financials and see it as a money maker for the University. It would be a huge step in bettering the community around campus.

[tophat]

I don't think UC had any choice, given the horrible numbers that made huge losses appear inevitable, in addition to other disastrous projects. I don't know what all the factors were, but one thing that sank this project was the bastards that refused to sell and held everyone up for years with litigation. I get upset every time I drive by there and see structures still standing as a reminder of their greed.

[iamspen]

One of the biggest reasons for the current failures of the Calhoun project, from what I hear, is a ridiculous rent, which would do much to explain why storefronts are still empty.