COMMENT OF THE DAY: WILSHIRE VILLAGE PAYMENT DUE “I forgot to mention that with regard to the loan Dilick took out to pay for taxes on the property four years ago, sources have reported that the bank set a deadline of early April 2009 for him to take steps toward paying back that loan. In demolishing the apartments and selling the land, Dilick would be able to pay back the loan and make a profit as well. . . . As to the comment, ‘This is private property. The owner should be able to do with it as he sees fit,’ the problem is that Jay Cohen, who inherited the property from his parents, still holds 80 percent ownership. Sadly, he was duped or forced by circumstance into signing over managing control to Dilick. . . .” [dredger, commenting on Comment of the Day: Grand Unified Wilshire Village Conspiracy Theory]
Sign up for the Newsletter
I’m not saying Dilick is a saint, but duped and forced are not the right words.
There obviously had to be some contract to sign over the responsibilities. It’s called reading. Hire a lawyer for God’s sake. It would have been worth it.
It’s like saying people who bought homes they obviously couldn’t afford were duped or forced. If they bothered reading the documents, they would have realized what they got into and could have decided not to sign.
Hypothesis from a real estate buddy over lunch is an occupancy percentage clause in whatever Cohen signed. Occupancy falls below X number of tenants/apartments, control reverts to Dilick. Some people did move out when the 2005 announcement was made despite Cohen telling everyone to stay put because nothing was going to happen.
By dupe or forced by circumstance, I meant that perhaps Cohen had to partner with Dilick and sign whatever papers went along with that, in order to get Dilick’s help in paying for the taxes on the property.
“Duped?” “Forced?” “Had to?” Give me a break. You have no clue what you are talking about.
This has been prime land for 20+ years. One phone call to Stan Creech and Cohen would have had developers lined up a block deep with offers to partner on developing this prime dirt. I couldn’t care less if Cohen cut a bad deal with Dilick. A deal is a deal. If Dilick is GP and calling the shots, it’s because Cohen gave him control.
It’s Dilick’s property. That means he gets to do what he sees fit with it. If you don’t like it, go line up some of your own investors and buy it from him. Don’t bother trying though, because when you run the numbers you’ll discover the same thing Dilick already knows: the numbers only work for demolition and redevelopment.
I call BS on the above. Dilick’s numbers probably only call for demolition and selling, though..
Lauren,
If renovating the buildings and upgrading the property was worth more, Dilick would have done this.
Dilick mostly likely isn’t a hater of old architecture. He’s indifferent and looks at this as a business transaction.
Dredger,
I would say Cohen was reluctantly thrown into the deal. He did have other options though. He could have raised rents. He could have moved forward with a construction loan to upgrade a building at a time which would have allow him to charge more rent for the upgraded buildings apartments.
It’s Dilick’s property. That means he gets to do what he sees fit with it. If you don’t like it, go line up some of your own investors and buy it from him. Don’t bother trying though, because when you run the numbers you’ll discover the same thing Dilick already knows: the numbers only work for demolition and redevelopment.
Actually, there are developers who are interested in buying the property from Dilick and restoring the buildings — amazing as that may sound to you, Bernard — but the problem is that Dilick won’t talk to them, just as he won’t talk to representatives of the surrounding neighborhoods who are concerned about the future of the property. If that’s not the sign of a responsible developer, I don’t know what is.
Red,
There are no reason Dilick has to talk to them. Also, could it be that the developers that are interested in restoring the property aren’t putting up enough money to meet Dilick’s asking price? What if the property value increased from removal of the buildings? It mostly likely will since the uncertainty that comes from demolition of old buildings disappears from buyers minds with a blank piece of property.
When it comes to the end, the monetary value of the property is what decides what happens to it. The emotional value of saving architecture is not quantifiable in business dealings unless saving the architecture actually presents a good monetary decision.
kjb434: I think I can go on record here as never saying that Dilick/Cohen/whoever did not have the right to do what they wished with the property, but how can he entertain other offers if he won’t respond to anyone’s requests for discussion? From all reports, the Houston Press can’t reach him, the Chronicle’s Nancy Sarnoff only got one general sentence, Houston Historic Salvage, GHPA and the River Oaks Examiner have all been stonewalled….I can’t locate the post at present, but a representative from a corporation that specializes in apartment renovation was trying to get in contact with him and posted on Swamplot sometime in February-March for contact info. Since demolition is imminent, I’m assuming that nothing came of it.
Now – the individual who posted on HAIF as a friend of his has just advised that, “regardless, ill contact matt and see what the deal is. if its appropriate, ill gladly pass along details.” (Lack of punctuation/capitalization credited to original poster). I plan to stay tuned.
i find it hard to believe that cohen would have let anyone take advantage of him…but i suppose it’s possible, because from everything i’ve heard he didn’t come out too well in the deal. if dilick did indeed get the bank to agree to wait that long for repayment to start, well, that’s how it’s done i guess.