Now Struever Bros.in Financial Trouble by Hezi Aris

 Yonkers, NY -- William “Bill” Struever is known to have transformed old, run-down industrial buildings along the entire Eastern Seaboard into vibrant commercial centers, seeing life beyond designated       blight. Over the course of three decades Struever Bros. Eccles & Rouse Inc., the Baltimore developer having busilt a legacy of infusing life intoatrophied property now struggles to maintain his own fcompany financially intact. Struever Bros. has defaulted on nearly $6 million in loans it borrowed to finance its construction projects and is facing lawsuits from Baltimore-area contractors seeking to collect wages from work on Struever’s developments.

“Over our 35-year history, we’ve battled through the ups and downs of the capital markets, including the early ’90s, which was a terrible time for real estate. I am confident that we will come through the heartaches of today’s economic downturn as well,” Struever said in the statement. “Like many other companies, Struever Bros. Eccles & Rouse is working through the challenges of these difficult times. We have a plan and are in close contact with our key stakeholders with a goal of reaching positive resolution.”

Baltimore City Circuit Court documents show that National City Bank and Fannie Mae are seeking nearly $6 million in loan payments the developer has failed to make, according to Baltimore City Circuit Court documents.

Ten additional contractors have sued Struever Bros. since July 2008; among those developments are Clipper Mill, and an office-and-warehouse conversion in Locust Point for tenant Under Armour Inc.

In Yonkers, Struever Bros. are understood to be no longer involved in the SFC Yonkers Inc. development project except for having the "S" in "SFC" monicker. City Hall has yet to admit this fact to the public.

The financial woes of Struever Bros., coupled as they were reported in the Yonkers Tribune*   regarding the financial concerns confronting Cappelli Enterprises, the "C" of the "SFC" monicker demands reassessment over whether Yonkers is  negotiating with firms fiscally capable of signing a contact worth being signed or if international investors ready and able to see the project through are an alternative for Yonkers development vision?

* Capelli’s Credit Worthiness in Question By Hezi Aris

* Cappelli: “…It is Unclear if the Project Can Proceed” By Hezi Aris

Update:

"The American Brewery project should not have been included in with the referenced development projects. The American Brewery is unrelated in this context and has been a successful project for Humanim and its community partners as a first step in re-vitalizing an East Baltimore
neighborhood."

Comments

[bald people]

So that leaves "F". What does of "F" stand for?

[anon]

Fidelco

[yonkers voter]

It means Yonkers is F'd!

[So F'g Corrupt]

our tranparent government once again telling the citizens all they need to know.

[.]

what was that you said davie?

“We want to get the stadium built — then worry about the team,” Mr. Simpson said.

Oh--Okay.

[Jim Johnson]

If Struevers is dealing with the same mess as others who had signed construction loan deals with National City Bank, it is not their fault. Early last year, NCB stopped funding a number of these loans on projects in progress for their own internal reasons (most likely because they had made too many of the them and the lack of capital to fund them caught up with the bank). Most of these loans guaranteed an amount of money that would complete the projects to the point that buyers and/or lessees making purchases and payments would then pay off the loan. The stops in funding meant that developers and contractors with work in progress could not make payment because they could not complete the projects without funding. In effect, the bank's failure to live up to its guarantees caused the borrowers to fail and thus the failure of the projects. There are a number of these loans that National City treated in this manner. In every case, the unethical actions of this bank will likely lead to bankruptcy and financial distress, not only for the primary borrower, but for a multitude of smaller firms that were involved as subcontractors, suppliers, and depositors on the properties being built.
Initially, the federal government bailout of banks (TARP) was intended to provide funds to get these loans fully funded so that the projects could be completed and capital returned to the banks. Instead, federal regulators played with the intent and changed the rules so that these loans were not funded and the banks were allowed to actually create "toxic" loans by stopping funding on good projects that would have repaid the notes.
The effects of these actions on the economy is immense in its tiers, including loss of jobs and personal bankruptcies. What Bernie Madoff did hits only a fraction of the number of people these actions have impoverished.

[Fed up]

Jim, It's not there fault? Who cares! The problem is not them it is the out of touch clowns on the hill! Like I posted earlier, amiclown is trying to finance the whole project (to the state and federal money givers)and it does not exist! Clearly another major breach and even more irresponsability by our city "Government".

[no need]

Unless Hezi reports this, no one in Yonkers would even know any type of status on this situation. I bet Capelli is bad shap too, he is not that well established to not be getting killed by the credit crunch. His WP buildings is in desperate need of buyers and his name in New Ro isnt so good. Oh well, Yonkers is going to get into bed with this clown eventually.

[Fed up]

The SBA just lent Cappelli aprox. 3.6 MILL to pay the city back or an already outstanding loan that they could not pay the city back for......You can't make this up!

[bobby bo]

another murder in yonkers, but go ahead, cut the police, who needs them, everything is fine, as long as lopez has a job ... what a joke this city is, WAKE UP PEOPLE

[Yonkers is America too.]

the last week of news has been terrible. Crime is going to be nuts this summer...if there is a summer. Happy 4th all!

[concerned about integrity]

11:02 is right. Keep Lopez with the 6 figure salary, the car, the perks etc. She is providing "something." And what would that be?

As for the Office of Constituent Services, it is basically referring everyone to local foundations and organizations for help they need. The office doesn't achieve the results that the local foundations provide, and is quick to take credit for that work. There is one person who works there, Anthony, who is capable of doing the whole referral service program on behalf of the city, and there's no need for his "superior" which is Lopez. Anthony can, and should, run that office at a fair salary. He doesn't have the bombastic ego of Lopez, and the voracious appetite to consume entitlements from the taxpayers. If the Mayor plays his cards right, he keeps Anthony as a true public servant, and relieves Lopez.

[Richard]

Thats right, leave Lopez in her do nothing job, while the city cuts the crime scene cops and detectives. Two units of the police dept that actually produce results, that results in felons going to jail.You cant make this shyt up! Only in Yonkers.

[pnom]

Yonkers is dead.

[anon]

Get all the inside people in the YPD out from their teat jobs and back on the streets and the felons will go to jail. Why do you need a female Lieut as a spokeperson when she should be out on the street supervising.

[huh]

Twitter me

[anonymouse]

You could probably cut the dead wood (most of the forest is on the second floor) from City Hall and not even notice. These patronage folks are mightily overpaid, overperked and underworked. The Mayor had better wake up and smell the coffee. Surely by now, those 2nd floor leeches (most of them husband-wife teams) have put enough aside in pensions, paid health insurance for life, that they can afford to be laid off. GIVE 'EM THE GATE! AND NOW!!!!

[.]

wake up and smell the coffee?
there isn't a person in the world who can't see what is happening fiscally to yonkers.
the mayor is protecting patronage and unions
it's as simple as that.
it's already too late to save the taxpayers from the pain this will bring.

it was too late when the mayor said yonkers was going to fall off a cliff one year ago.
But to do nothing Phil: is just short of criminal.

a class action law suit against both the mayor and the city council is required.

enough is enough

[game over]

"S" is gone
"C" apparently can't pay their own bills without a loan from the city
"F" no one knows.

The project goes from 3.1 Billion to 1.6 billion to 500 million.
The cities investment stays the same.

So... what does SFC leave us to consider?
They have no money
They apparently don't own any property
Maintained vague responsibility and leave the city with the enormous burden of improving infrastructure
They’re not daylighting the river (and without money - neither is the city)
They lock up the downtown from any potential investors--with the exception of one.
They’ve provided a the threat of eminent domain.
And a loss leader of a baseball stadium ...

Even if the LDA is approved (as ridiculous as that would be) SFC would sell the project ---hoping there are buyers---because it doesn’t appear they can build it.--locking downtown up even longer.

And the result:
One major investor with no apparent interest in doing anything but holding empty buildings.
Failed businesses throughout the downtown.
Filthy streets
Empty storefronts
And a useless BID

A great development for BLIGHT.

What LDA?
There is no LDA to approve.

[Kell Keenan]

Hate to bring up the obvious.

Lopez job was one of e few that the state actually certified so enough about Lopez. She doesn't cause an average of 15million of police overtime in the last 2 years.

Why does every police department anywhere in New York have the highest paid workers. Ask yourself why is there so much overtime - it's not the construction projects, it's not unplanned work. It's paying for routine affais - like making an arrest.

Why do cops have to come in on overtime to sign the complaint for an arrest they made, why can't someone from the DA's office come to the stationhouse on regular time. Why is court time, over time - the cop that makes the arrest is kida expected to testify - why should that be overtime.

Speaking of that - why is overtime even calculated into pensions. Pensions can easily be calculated on base salary. that would save money.

We all have great respect for the police and fire fighters but it's a job - something is wrong and it has nothing to do with the patronage jobs.

Until all of us really want to get to where the costs are then your just typing in the air.

As far as development - the condidtions are teh same for everyone, so give SFC the LDA with the strings attached - there is no one else and yes Yonkers needs the revenue.

[Wrecking Ball]

If Yonkers was a city of business leaders, they would not have looked to ultimatly GC the job to a Master GC. The city would have devised a away to have different investors begin their own respective projects ie.

Waterfront
Getty Sq
Chicken Island
Misc.

All sepperate. All approved with their own financing, their own business plans, and their own credibility. Capelli is the equiventlent to the girl who got around in HS. He has slept with Westchester and his game is too well known in these parts to now be in bed with Yonkers and all the red tape this city would ultimatly need to cut to get him building quickly.
ie. Halevy & Martinelli
When that plan went south due to stupidity, its became a matter of time that the hour glass would run emtpy, and for us it was the Great Depression revisited. Of course Yonkers waits with nothing even in the pipe line for real, with our collective "Dicks" in our hand.
The LDA is the icing on the cake right now for Yonkers to get creamed even more. They will stage a nunch of shit in Chicken Isl, make it look like some big things will happen and They are going to pay free rent to house a bunch of cranes & bull dozers & dig a big ditch for us with Golden shovels to break the ground....
Scaffold will run the perimeter of the blocks up New Main to Pal to Old School st...people habits will forever be changed. Enough will be done to change the way the square works and get people to move along to somewhere else in Yonkers.

[game over]

The notion "Wrecking Ball" is presenting, explains a city that knows what it wants without deferring to a developer to say "here's what you should do" and give them exclusive rights to hold an entire downtown hostage.
One Very Big Strike City Hall.

If nothing else—(and that in itself is a big question)--: BAD BUSINESS.
It is an incompetent business plan.

The key to SFC is they are looking for property rights--to be place holders for downtown. If the mayor and city say they didn't see this—besides the FACT they have been advised otherwise--they shouldn't be in any position to make these decisions.

Next---Lesnick will attempt to compromise the LDA even further to avoid an SFC lawsuit.
The "best solution for everyone"
Sure Chuck.

Revenue from this development?
To the previous poster: You must be joking.
Show us the revenue.

This is one case if city Hall did NOTHING we would be better off. The damage they have done to downtown is yet to be seen. For the last 5 years this city has dug business and taxpayers into a hole so big---it will take decades to recover.

And the poker game goes on: next they will tell us: Without SFC Yonkers is finished.

So the question begs:
SFC: what value have you brought to downtown Yonkers?
So far the answer is MINUS ZERO.

The fact the mayor and city council let this imbecilic charade go on this long should be-- in and of itself--grounds for suit.

SFC master developer?
hahahahahaha!
Con Artists is more like it.

Game Over.
And Yonkers will do just fine without SFC.

[way to go phil]

according to this bloggers page, yonkers is way off its game:

http://www.bullcityrising.com/2008/07/h-s-struever-br.html

this is one year old news
interesting read

didn't we just lend these guys a huge sum of money?

[way to go phil]

and this one is specially for hezi

apparently fidelco filed for bankruptcy this past fall in regards to the ownership of a minor leaque ball team

http://www.sportingnews.com/mlb/article/2008-10-30/newark-bears-file-bankruptcy

[City of Hills]

why did the commissioner cut the street crime units and not the boat unit?