They are going to have to pay these soft costs (deposits and fees) as soon as construction starts so timing on BR is too late. They’ll steal from referendum reserves. Just watch…
Also, with that said .. I debated you a bit in the comments a while ago, I thought they could pull this off. I figured they could grind out $44m in the lease cert fund via interest plus the sale of some properties, they'd be able to squeak it out. I still think it's the case they'll squeak it out but I'm not sure I should *want* them to anymore, because it means ultra low budget everything while also trashing the District finances. "Hey fifth ward, here's you're new school and oh yeah, there are no doorknobs"
Oh I am in agreement with you - BR is at least a few years out from sale, even if it closed tomorrow (its still open next year), it's going to take time for a property like that to sell. Who the hell wants to buy a mid-century school building that is in need of repairs?
I think they've already dipped into referendum reserves and this will just go deeper. Technically even the $3.25m per year comes out of the reserves in a way - when they end the year -$3.25m in the red, that difference is made up with reserves. Last year, they took ~$6m from the reserves fund due to operating loss.
The additional $6m comes from reserves, which can either be Bessie Rhodes sale revenue or just the $30m or so they have put aside.
They are going to have to pay these soft costs (deposits and fees) as soon as construction starts so timing on BR is too late. They’ll steal from referendum reserves. Just watch…
Also, with that said .. I debated you a bit in the comments a while ago, I thought they could pull this off. I figured they could grind out $44m in the lease cert fund via interest plus the sale of some properties, they'd be able to squeak it out. I still think it's the case they'll squeak it out but I'm not sure I should *want* them to anymore, because it means ultra low budget everything while also trashing the District finances. "Hey fifth ward, here's you're new school and oh yeah, there are no doorknobs"
You were right, I was wrong!
Oh I am in agreement with you - BR is at least a few years out from sale, even if it closed tomorrow (its still open next year), it's going to take time for a property like that to sell. Who the hell wants to buy a mid-century school building that is in need of repairs?
I think they've already dipped into referendum reserves and this will just go deeper. Technically even the $3.25m per year comes out of the reserves in a way - when they end the year -$3.25m in the red, that difference is made up with reserves. Last year, they took ~$6m from the reserves fund due to operating loss.