When will the Ketchum City Council require the developer of Bluebird provide the financials of the project? To date, the developer has refused to disclose the costs of the project, claiming at his June open house that he does not know the costs. This cannot be true. All developers maintain a constantly updated cost projection for any project they consider or launch. Indeed, he cited $20-25 million in 2018.
Since the city of Ketchum is a major investor in Bluebird, we should see the same detail that the developer typically provides to a lender or investor. We, as citizens, are investing $8 million composed of land value exceeding $6 million (could be as high as $10 million), $560,000 from KURA and over $1.4 million from the in-lieu fund. Plus, there are the millions in lost property taxes that would be generated from a full tax-paying development.
Beyond this, if the developer runs out of funds prior to completion, will the city need to step in and complete the project? Does the developer have adequate financing to complete the project? Who is the lender and how much are they lending? Why isn’t the City Council holding GMD to the same standard as local developers to substantiate project costs and financing? As a fiduciary, the City Council must demand the full economics of the project so we can understand our risks.
John Melin, Ketchum