Monday, September 15, 2008

The Business Journal of Milwaukee: Millions needed to finish First Place

Court-appointed receiver Michael Polsky, a Milwaukee attorney, has been assigned to manage the financial woes of First Place on the River. Since First Place went into receivership earlier this year, the condominium development spent nearly $7 million, with the majority going to contractors who had either filed liens against the development or sued the development for payment.

According to Polsky, First Place needs another $18.2 million before it can be properly completed. This request for additional funds will help pay for completing the condominium units, installing a marina, marketing, and paying required real estate taxes.

The Mandel Group of Milwaukee was named in May to assist in the completion of the condominium development, marketing and sales of the condominium units, as well as manage the condominium association.

According to Rick Kirchen, writer for The Business Journal of Milwaukee, it sounds like Mandel has yet to begin any work. The article mentions that once the development is complete, Polsky can move forward with his plan to hire the Mandel Group to manage First Place. It has been reported that First Place was 90 percent complete when it went into receivership.

According to Polsky’s plan, the best outcome would result in all of the financial backers to recover 75 percent of the $56 million owed them by the development.

Other creditors involved in First Place do not agree with Polsky’s decisions regarding the treatment of satisfying the development’s outstanding debts. According to the article, AnchorBank, the lead bank for First Place, would have priority position for having their position restored prior to the other creditors receiving payment.

Kirchen provides a very complete and detailed explanation for the reasons behind First Place’s financial troubles and identifies the sources for the remaining costs for the development. Click here to read about what’s next for First Place on the River>>>


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posted by David Ray @ 7:05 PM

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