Wednesday, August 06, 2008
Ulterior Motives Behind May Town Place?
Is Tony Giarrantana just a May family mercenary lobbyist hired to grease the Planning Department machinery for a zone change, and then walk away? Are both May Town Place concept and the promise to finance a bridge both cruel ruses to spring the building of anything the next set of builders desires (MetroCenter II?) on top one of the most important pieces of greenspace in any urban setting?
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Rezoning of the May property will be contengent upon a bridge. There is no way that land will be rezoned if the only access is Old Hickory Boulevard. That's all that needs to be said.
ReplyDeleteYes, upon constructing a bridge and getting the rezoning, May could sell out and make a mint. But who's going to plunk down a quarter billion dollars for an empty piece of farm land when there are so many other properties here and around the world one could put that money into that are actually producing cash flow?
Selling the property after rezoning would have made alot of sense if the bridge was going to be paid for by the state. That's not going to happen.
Ray Bell and others have shown interest in constructing the bridge and turning it into a toll road. It's foolish to think the bridge won't happen.
ReplyDeleteIt is all but assured that this is a land speculation deal. Tony Giarratana doesn't have the credentials, experience, or chutzpah to handle a project of this magnitude. MTC as planned will never happen.
What will happen, though, is that as soon as the zoning passes, the Mays will sell it to any number of high bidders. It will be developed piecemeal, or more likely, someone like Pat Embry (Cool Springs' development czar) will take the reins and develop it.
Mike, you're right on the money with your assessment.
I reinterate the fact that the state is not going to pay for the bridge to Bells Bend. Any change in zoning, however, will likely be contingent on a bridge being built. So, May has nothing but farmland to sell until he builds the "bridge to nowhere." Once complete, and still without the first building under construction, his group will be in for over $125 Million.
ReplyDeleteIf they want to sell for a quick profit, say for $200 Million, where are they going to find a buyer who will to pay that for a bridge and a field? Whose going to bet MORE on the dream of a "second downtown" outside of the folks who hatched the dream? If the partnership's belief in the viability of a May Town is too rosey, the weaknesses of their economic numbers, as noted by opponents own analysis, would not withstand the scrutiny of a prospective buyer. No, that's not the plan.
I think the plan is to have $4 Billion dollars in improvements on that land in 20 years, making the land worth about $1 Billion, which if they sold it would be a $875 Million profit for simply holding on to it during the development phase. That's in addition to the steady stream of income from the developers who will be leasing the land from them while they hold it.