Although Flaherty & Collins Properties has been in business since 1993 building, constructing and managing multi-family housing in nine states and has 90 properties, totaling 12,000 units, the company has had two projects go into bankruptcy in recent years.

In October 2009, the company filed for Chapter 7 bankruptcy on a 48-story, 419-unit condo tower it was constructing in Charlotte, N.C.

It was followed seven months later when the company filed for Chapter 11 bankruptcy on a 274-unit apartment complex in Raleigh, N.C.

“The bankruptcies happened at a time when real estate values deflated because of the economy and (changes in) credit market,” Crossin said.

The Raleigh project had been completed, but the mortgage market situation made it difficult to get permanent financing to pay off the construction loan, even though the complex was 93 percent filled and was already making money, he said.

So...... no real lender (i.e. a bank or capital company in the business of analyzing risk) will lend these developers money for the project, but that doesn't stop Ms Mampe and Mr. Grimes from saddling the taxpayers with TENS of MILLIONs of dollars in debt and interest costs. If this development is such a sure thing why aren't the banks and capital companies jumping on it?????

I'm just completely confused as to why the Village doesn't just sell the land to the developers & put them on the hook for all costs. If it's supposed to be that great of a plan & the Developers believe in it's success, then why is the Village taking the chance with using Bonds to pay for it?

Since there is no stopping this, I do try to find a silver lining - it just seems more difficult each day. There are so many regular reports in national and regional newspapers that just enforcing my thinking that this is not the right time for the Village to be using our own money for a project like this.

At the last Village meeting, they mentioned they already had 2 calls from people wishing to be on a wait list - still leaving 293 other units, who's target marketed are 18-25 yr olds primarily. But I don't see how these would be filled with renters of that age group. Unless you're talking 4 roommates per unit, which would be a nightmare for the empty nesters. The 18-21 won't have degrees & their minimum wage jobs can't afford this rent. The 22-25, if they have a degree, according to the redeye, can't get jobs today that pay enough to cover their loans, let alone rent. http://www.redeyechicago.com/news/ct-red-0817-column-bolohan-20110816,0,3304300.story

So without a guarantee, it just doesn't make sense to me to put taxpayers & other residential services potientially at risk for the Bonds not geting paid. We all know that if taxes don't go up, services are cut.

I would like to see the loan structure to the LLC that F & C will create. What skin will the developer have in the game? Joint and several guarantees from F & C and it's principals? If there is a bump in the road, what is F & C's incentive to make the deal work? If there are cost overruns, are they on the hook or does the Village loan them the money? And to prevent what has happened in North Carolina, what is preventing them from walking away from this deal?

Lets see, one concrete company, one lumber company, a grocery store, bakery, barber shop, restaurant, a hardware store, a door and window store and a carpet store, among others, all gone. All of them successful tax paying parts of the community employing hundreds with living wage jobs. In it's place, more risk than any venture capitalist would ever take on. Only the taxpayers in Orland Park have any skin in this deal. So again, can we purchase these bonds? Or are they for the elite risk averse special interests that seem to come out on top even when everything turns into a steaming pile. Limited Government (Our Constitution) is supposed to provide for the general basic needs of the people, not compete with the private sector. No private company can compete with endless tax money. I'm not so sure this project even qualifies for being a TIFF district. It wasn't blighted or in need of public funds to improve. And shouldn't the village have waited to see if the $10 million Mall Tax case is won or lost. All on the taxpayers. I hope this ends well, it's a huge gamble, for what?

U.N.B.E.L.I.E.V.A.B.L.E.

Why is everyone so upset? If there's anything we've learned lately from the federal government it's that racking up huge debt is a smart idea. <----- This is me being very, very sarcastic.
And nothing ever costs what the government says it will cost. Private businesses can do things a million times more efficiently than the government could dream of. Kinda makes you wonder, as some have pointed out, why this has to be financed by the Village.

To Paul's comment....DITTO!!

Twenty four people were in attendance. The mayor and Grimes read prepared statements and lacked any outward enthusiasm for this project. Their shove it down the throat approach was evident. It's a done deal and F&C couldn't be more happy.
Oh yes, a public meeting at 6 p.m. on the the 29th. Nice dinner time meeting.

When are enough people going to wake up to what's going on.

There are lies, d_ _ lies, and statistics. The trustees, like sheep, will follow their leaders.

Well, I have statistics that show that mayors are voted out and village managers leave also.

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I've always thought Dan thought himself a mini-Daley. This is our Block 37. In the late 80s, Chicago tore down landmark buildings on behalf of a developer, the development fell through, and the land sat vacant for more than a decade. There were at least 5 separate failed redevelopment plans that failed over the years. The city got ownership, and gave development rights to the developer who started the development which finally occupies the site. Two developers later the project is now owned by the bank, only in our case, the bank won't be Bank of America, but Bank of Orland Park.

http://en.wikipedia.org/wiki/108_North_State_Street#Block_37

What happens to the other parcels? As they sit vacant, will Orland loan developers money for them as well?

Very Proud in my Village to be Investing in our future!! One HUGE step up for Orland Park!! This will bring Great jobs for years to Orland Park!! Also bringing in more part time workers to work & live in the area increasing sales tax revenues and overall help.. !! and you ask why do it now… lower building costs.. higher rents.. higher demand for rental..

Based on the optimism I see with this project, I would have to say those involved are gambling that in 2+ years we will be in great economic times. Please tell the rest of the world. May I suggest to these "I want to be a millionaire types", buy a call option on oil, now. Show me your true conviction. Who would want to be in cash right now? One other thing, isn't Orland Park going to have to spend millions on the water project with Oak Lawn? And I'm worried about the tax case with the Mall owners. Another Indy group. What is it with Indianapolis?

Rise up good people of Orland! Don't let these developers play with OPM -- "Other Peoples' Money" -- Your money. if it's a great investment these rich developers should want to put their OWN money into this......

$1500 for a single and $2000 for a double. Nice. I will rent you my home for $2000 ! Keep in mind, in this economy, contractors are very appreciative for the work. Very appreciative. VERY, VERY, APPRECIATIVE.

Financing luxury apartments on the backs of the working families is insane. The following is a headline that appeared in today's financial news...
NEW YORK (Reuters) - Rising fears of another recession hammered U.S. stocks on Thursday, sending major averages sharply lower in a return to the extreme fluctuations investors endured a week ago.
Our elected officials must be smoking something very powerful!!! There's no other explanation for their actions.

@Paul......you are correct, there will be apt under $1500...the lowest, however is still $1000!!! So please...let me know what 18-22 without a real degree paying job is going to be able to afford that? I'd love to apply where they work!

Also..please post the link on $200K 3 bd home going for only $1600. I researched 3 bed ranches in orland and there wasnt one under $2K.

i didnt mean it the way it may have come off.. but nothing wrong with getting a second job or not going to the bar or casino so much so you can afford the lifestyle you want to live.. im just sick and tired of people complaing about money yet they are living outside their means!!.. if you cant afford it just because someone will finance it doesnt mean you should go buy it !!

thats assuming all the the units were 18-22 year olds.. alot will be single men or women who want to take the train DT.. maybe another portion being single parents or something to that nature.. and if they are wanting to live in that type of "luxury" im guessing they may be above the screeching tires or loud music.. if not its easy to put ordinances in place to prevent that..

and if you live 2 blocks from there now u live 2 blocks from some of the worst maintained apartments in orland park and lets pray to god those get demolished and replaced as well..

i would love to be on the board.. i would start forcing the investment in our infrastructure (commercial )and give tax breaks to those residents who update there homes in a major way!! shall i ask for your support at the next election..

While I have to agree that the apartments in our section of the town are not the best. If it wasn't for them, many would not be able to afford a place to live, as other rentals cost to much for them. The majority living there are good people. They live there because they either fell on hard times & are starting over, or others are single parents, families or retirees who would rather pay only for simple basics and have money left over for other basic needs or savings for their family's future, instead of luxuries they don't need.

Instead of demolishing everything that doesn't look brand new & fancy, I prefer our Village finance low cost home improvement loans to help the owners beautify & update their buildings. It sad to me when people look down on others because they can't afford the best of the best.

If you would like to be on the board, I would take time to get to know all the people who live in Orland, rich & poor. I think the next election will show more residents researching & looking for candidates who want to represent their needs. Not just someone who is looking to get into office for their own desires. I'm not saying I don't like some of your ideas, but many need to know you can put residents needs above your own when it matters. For example, in the past 10 years Orland has seen an increase in criminal activity. I want to see plans to get decrease this and protect us more.

Come on guys, some of these comments make it sound like this developement will be a combination of a college dorm and Cabrini Green.The idea is that there are some folks who would like to live near the train so they can comute downtown. I'm guessing that they will be younger profesional people who might be saving for a home, perhaps some older folks too who have decided to downsize. With the real estate market being what it is, I'm thinking that there are some people who would prefer to rent until things calm down. We can debate all day how we came to this point, but now we're here and I think that this is about the best option that we have.

sorry here's the rest of the article...
The lack of vacancies caused by this influx, combined with the lack of new apartment complexes being built each year except in the downtown area has caused a high demand for rental space -- leading to higher month's rates.Some of the most popular rental neighborhoods like Lincoln Park, Gold Coast and some suburbs can expect increases as high as 3.4 percent this year, a substantial rise from 2010's 2.5 percent increase."We can certinaly confirm [the high demand for apartment rentals] because we're on the front lines dealing with landlords every day," said Andrew Porter, chief operating officer at Chicago apartment rental service domu. "Apartments are leasing much faster and much earlier in the season than ever before."

.
Rent increases are expected to rise 2.9 percent in the Chicago area this year -- up from 2.2 percent in 2010 -- according to a report released by real estate investors Marcus & Millichap.

Lincoln Park, Gold Coast. Close to jobs and low cost transportation, walking distance to work. No need for a car or train fees. You are comparing apples to watermelons. This is not a "Field of Dreams". Build it and they will come! Jobs first, housing later.

Interesting quotes from Thomas Jefferson:
--> To compel a man to subsidize with his taxes the propagation of ideas which he disbelieves and abhors is sinful and tyrannical.
--> It is incumbent on every generation to pay its own debts as it goes. A principle which if acted on would save one-half the wars of the world.
--> I predict future happiness for Americans if they can prevent the government from wasting the labors of the people under the pretense of taking care of them.
--> My reading of history convinces me that most bad government results from too much government.
--> I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property - until their children wake-up homeless on the continent their fathers conquered.

Oh great Patriot. Lo, the words of our other predecessors too:

"The business of America is business." -- Calvin Coolidge

"Every power vested in a government is in its nature sovereign, and includes by force of the term a right to employ all the means requisite...to the attainment of the ends of such power." Alexander Hamilton's Opinion on the Constitutionality of the Bank (1791-02-23)

"It is a maxim deeply ingrafted in that dark system, that no character, however upright, is a match for constantly reiterated attacks, however false." -Alexander Hamilton

"Drive thy business or it will drive thee." -- Benjamin Franklin

"The only limit to our realization of tomorrow will be our doubts of today." -- Franklin D. Roosevelt

Anyway, the point is, I can come up with any number of quotes from great Americans that will basically counter any other great American's quotes...

Kids, stay on topic instead of the childish swipes.

Learned a new word today. Misfeasance: the wrongful performance of a normally lawful act; the wrongful and injurious exercise of lawful authority. I wonder if the Orland Park trustees are familar with the word...

I've only lived in Orland Park for five years (moved here from Oak Park) but I'm happy to have a mayor with the testicular fortitude to disregard the nattering naysayers and get this town moving forward instead of stagnating in the past.

TIm....its the financing, growth and development is great, just not on the backs of the taxpayer. This means you. The risk is on the village not the developer.