The Divine Lorraine

[eldondre]

could be any of those guys...doubt it trades anywhere near that price. tony goldman owned it about ten years ago..it kept getting flipped for more money..in some ways a victim of the re boom

[mja]

I'm sure the neighborhood people didn't help, but I find it more likely that the recession did far more to kill any potential development than requests for scholarships. The owner says as much in the article.

And can we not just call out the poor West Poplar folks? Uppity bo-bo's from SG & Fairmount ended up killing the Barnes tower in its infancy because of the horrific dangers of shadows and we're left with half of a motel in a prime location. At least the West Poplar folks were worried about their continued ability to be able to afford to reside in the neighborhood instead of a rather trivial bit of shade.

All that said, yes, I'd rather the city not cater to neighborhood groups at it's own expense, particularly those aligned with folks futilely trying to resist gentrification, but I don't see any point in demonizing people who just want to be able to live in their own neighborhood.

[Titus]

All that said, yes, I'd rather the city not cater to neighborhood groups at it's own expense, particularly those aligned with folks futilely trying to resist gentrification, but I don't see any point in demonizing people who just want to be able to live in their own neighborhood.

OI agree they ought not be demonized if they merely want to live in their own neighborhood, but like many others they have no right to prevent others from living there as well (I'm talking to you "North" Chinatown folks). None of us "owns" our neighborhoods.

[torts]

Robbery, stabbing in Fairmount Park

"A 32-year-old man who lives in the area was walking in the 2700 block of Pennsylvania Avenue at about 4:35 a.m. when a man came up behind him and pressed an object into his back, saying it was a gun, police said."

[Jayfar]

Robbery, stabbing in Fairmount Park

"A 32-year-old man who lives in the area was walking in the 2700 block of Pennsylvania Avenue at about 4:35 a.m. when a man came up behind him and pressed an object into his back, saying it was a gun, police said."

Gee, that's only about a mile from the Divine Lorraine.

[mixiboi]

Anyway back to the story:

Potential buyer found for Divine Lorraine Hotel

The current owners owe the city $702,779.82 in back taxes and defaulted on a construction loan from the union-owned Amalgamated Bank of New York.


Im sure the city and the bank would love to see that money...

[DCnPhilly]

Anyway back to the story:

Potential buyer found for Divine Lorraine Hotel

The current owners owe the city $702,779.82 in back taxes and defaulted on a construction loan from the union-owned Amalgamated Bank of New York.


Im sure the sity and the bank would love to see that money...

I know it's more complicated than this, but it's my knee jerk reaction. If the city wants the $700K, reposess it from the tax dodgers and flip it to Blatstein (or any of a dozen developers) for $2M. The city makes a profit, and the owner doesn't have too much invested to inhibit a profit.

[raider.adam]

I know it's more complicated than this, but it's my knee jerk reaction. If the city wants the $700K, reposess it from the tax dodgers and flip it to Blatstein (or any of a dozen developers) for $2M. The city makes a profit, and the owner doesn't have too much invested to inhibit a profit.

Actually, tax sales don't work that way. If a property goes to sheriff sale, when the property goes for more than the money owed to the City, the owner gets the difference*. Of course not to distract from your main point. That property should have went to sheriff sale a very long time ago.

*Well, by LAW they get the difference, but as we have found out from the corruption in the Sheriff's office and complete craptastic and probably illegal actions of Sheriff Green, the City hasn't been returning the money and instead hiding the lost money in bad accounting.

[DCnPhilly]

Actually, tax sales don't work that way. If a property goes to sheriff sale, when the property goes for more than the money owed to the City, the owner gets the difference*. Of course not to distract from your main point. That property should have went to sheriff sale a very long time ago.

*Well, by LAW they get the difference, but as we have found out from the corruption in the Sheriff's office and complete craptastic and probably illegal actions of Sheriff Green, the City hasn't been returning the money and instead hiding the lost money in bad accounting.

Lovely. Another layer of nonsense. I know I've said this before, but it's amazing how much money we pi$$ away to keep electing these ingrates.

[raider.adam]

Lovely. Another layer of nonsense. I know I've said this before, but it's amazing how much money we pi$$ away to keep electing these ingrates.

Sheriff's Office may owe millions in unclaimed auction proceeds - Philly.com

[DCnPhilly]

Sheriff's Office may owe millions in unclaimed auction proceeds - Philly.com

Oh, Philadelphia. This could turn into one very expensive a$$ ache. I'm glad we're calling out corrupt officials, but if people start stepping forward for their money, it could cost a fortune the city doesn't have.

[raider.adam]

Oh, Philadelphia. This could turn into one very expensive a$$ ache. I'm glad we're calling out corrupt officials, but if people start stepping forward for their money, it could cost a fortune the city doesn't have.

Sadly, we aren't calling them out. He retired and that is when the forensic audits started. Harrisburg screwed up because they didn't freak out when money and reports stopped. Alan Butkovitz the City Controller screwed up because he didn't audit the office like he is supposed to every year.

Ok, enough of me hijacking the thread. Back to the Divine Lorraine...

[the mule]

Nutter: PGW, Divine Lorraine hotel could be sold

Sounds like Darrel Clarke wants to get his greasy hands on the Divine Lorraine and jam some affordable housing into it.

Stupendous.

However they could justify the cost of turning the Divine Lorraine into low income housing is beyond me. It'd be easier to just build from scratch probably.

A thorough historical rehab of the Divine Lorraine would take every penny of $50 million, if not more. The last proposal for the property incorporated low income senior housing on the bottom half of the property and market rate apartments on the upper floors. A very successful, very well known affordable housing developer wasn't able to make their numbers work before the deadline for LIHTC applications this fall. So getting tax credit financing and $3.4 million from the city, which is much better financing terms for the rehab than any private developer would get, still was not enough to make the project viable. Poo poo affordable housing all you want, and you have good reasons for doing so, but it will be VERY surprising if a private developer is able to make this project work without any subsidies.

I'd love to see a faithful restoration of this building without it being encumbered long term with affordability requirements. It's an embarrassment for it to sit there crumbling so close to the heart of our city and certainly is impeding surrounding development on North Broad. It's easy for politicians to talk about this project happening; they just have to put their money where their mouths are if they ever want to see it go forward. Affordable housing or not, whatever developer ultimately makes this happen is going to have to get a sweetheart deal from the city to get it started.

[eldondre]

take it by eminent domain and sell it off with a requirement that it must
be renovated at least partually within two years...even if it means seling it below 700k. iy cant hurt that the new owner wony have overpaid for the property. we need to move on from the hack that owns it now. gutting it and leaving it open to the elements was despicable..
still, i guess its not the only property thats taken years to get cleared off the banks books as a loss. anyway it aeems like a good use of rcap funds if there ever was one

[raider.adam]

take it by eminent domain and sell it off with a requirement that it must
be renovated at least partually within two years...even if it means seling it below 700k. iy cant hurt that the new owner wony have overpaid for the property. we need to move on from the hack that owns it now. gutting it and leaving it open to the elements was despicable..
still, i guess its not the only property thats taken years to get cleared off the banks books as a loss. anyway it aeems like a good use of rcap funds if there ever was one

The government still has to pay for the value of the property.

[Jayfar]

lol Blatstein is probably involved in this too. Or Blumenfeld. I feel like it would be one of those guys that are heavily invested in N Broad.

If I recall correctly, Blumenfeld was already in and out of the DL. I was thinking Blatstein or maybe Orens Bros. Or Dranoff.

EDIT:

Yep, Eric Blumenfeld bought the DL in 2005.

Naked Philly calls the odds in the same order I did and adds a few other possible long-shot possibilities.

Laying Odds: Who’s Buying the Divine Lorraine? | NakedPhilly

[palvar]

At least the West Poplar folks were worried about their continued ability to be able to afford to reside in the neighborhood...

Isn't there public housing a block away from this building?

[eldondre]

The government still has to pay for the value of the property.

that's the question I guess, what's the value given the building must be fixed up?

[mja]

Isn't there public housing a block away from this building?

Yes, there is. Does that fact mean they don't have a stake in their neighborhood?

Again, I have no desire to cater to these people, but I sincerely doubt they had any real impact in derailing this particular project. The collapse of the financial system seems a far more likely culprit.

[raider.adam]

that's the question I guess, what's the value given the building must be fixed up?

The starting point would likely be the last sale price minus back taxes.