The Bullard Houses
- Ask what their plans for the property are
- Ask about group’s history
- Ask about their future directions
Find out...
- Plans for the property
- What they can pay and in what form
Relationship
Options
Communication
Interests
- Maximize profit
- Want to build a casino
- Prefer money in hand over future funds
- Don’t damage political ambitions
- Try not to rezone Bullard unless it will make the mayor happy
BATNA
Criteria
Reserve: $25 million in cash
Aspiration: $30 million in cash, to be used in a politically desirable way, pays off our debt
Madison Properties
- Wants to create 91 luxury apartments
- Sell between $900,000 and $1.5 million; revenues of ~$100 million
- Want to buy 75% of Downtown stock and give us %25 share in profits after costs
- Up front we get: $11 million cash
- assumption of our Mortgage ($1.77 million)
- payment of $60,000 back taxes
- Total value is 20.5-23.5 million
Commitment
Alternatives
Madison Properties
- Wants to create 91 luxury apartments
- Sell between $900,000 and $1.5 million; revenues of ~$100 million
- Want to buy 75% of Downtown stock and give us %25 share in profits after costs
- Up front we get: $11 million cash
- assumption of our Mortgage ($1.77 million)
- payment of $60,000 back taxes
- Total value is 20.5-23.5 million
Grouse, Inc.
- Create Boston Market type commercial center
- Double area, connecting glass pavilions, new gardens
- Must be re-zoned
- Pay $14.2 million cash for 60% of our stock
- 40% share in profits
- They loan us money to develop it, and if it doesn’t work, they will pay all carrying costs until we find another buyer
- Grouse must remain anonymous for the time being
Gentrification, Inc.
- Wants to develop 51 brownstones
- Pay $60,000 and $189,000 debt
- Mostly pay in notes that we could sell in the bond market for cash
- Total value is 24.5 million
Options
- Can pay off: $60,000 and $189,000, add $500,000
- Keeping residential; addresses zoning...it's a hotel
- $22 Million--received within 7-10 days
- Green space accessible to all
- Town meeting-style meetings areas
- Tell city they're not interested in moving people out, are interested in maintaining the historical character of the property
- Keep confidential until permits are in place