Seriously though, this John Wright article reports that Ogden city officials have received some kind of a lender "commitment," one of the heretofore unresolved crucial steps in moving our downtown recreation center project forward. My initial impression, upon reading the article was that Ogden had perhaps changed its financing approach, inasmuch as the story didn't say anything about bonding. This however is not the case at all
I put in a call this morning to Scott Brown, Ogden City Economic Development Manager, to try to flesh out the story a little bit. Scott is Ogden city's financial guru; the man who's putting the deal together. Scott indeed informs me that a general written lender commitment has been obtained, for the issuance of the letter of credit that will allow the issuance of the bond certificates that will be sold to pay for the rec center's construction. The only loose end of the letter of credit agreement is the precise interest rate and terms; and Scott is still working on this. It's a task easier said than done in the current commercial credit environment, where interest rates and commodities prices move wildly hour-by hour. Scott assures me though, that the final deal is imminent. The bonding arrangements are already set up, Scott also assures me. I believe him. He and I have a track record. He's NEVER lied to me.
In addition to this, Scott is working on finalizing an extension agreement with the project contractor, and attempting to nail down construction materials and labor costs. This aspect of the project is a thorny one. Steel and concrete prices have escalated through the summer, as we've previously noted; and the twin hurricanes in the Gulf Coast region have made some materials entirely unavailable. Scott is confident however that the project can be brought in at the current $18.5 million estimated price, (which reflects a $2 million "fudge factor over the original $16.5 million estimate,) although he confides that this aspect of the project is causing him intermittent "heart pains."
And then of course, there's the lingering question of TCE contamination. Nobody really knows how that's going to shake out, notwithstanding Dave Harmer's
I for one hope that Scott's efforts are not in vain, and that he's able to pull the rabbit out of the hat. Scott is a brilliant, hard-working and decent guy, and a pre-2006 groundbreaking would be a real feather in his cap.
Once again, and for the record, I'll reiterate that I am in favor of the rec center project. I'm an inveterate gym rat. I can't wait to start pumping iron at a new flagship Gold's Gym.
And while we're on the subject, I think it's time for a new poll. I've had a poll running since September 26, and it's time now to close it out.
Here's the question I asked, and the results to date:
"Will all necessary legal prerequisites for the Recreation Center project be fulfilled prior to the January 1, 2006 "drop-dead date?"
Yes (18) 19%
No (76) 81%
Total Votes: 94
I'm going to zero out the results and leave the same poll query in the right sidebar. I think it will be interesting to see how our readers react to the new information we've received today. Don't forget to cast your votes.
And isn't it great to embark on the weekend with just a little bit of positive news?
Comments, anyone?
