The Tulsa Forum by TulsaNow

We shall see.

What will the low rent, no account grad school hipsters like me drink, then?

I drive by the building almost every day and I must be missing all this construction activity.  I keep reading these articles about things being built, but I'm just not seeing it.  Maybe they are on a schedule that doesn't coincide with my morning commute.  I really hope this thing finally happens.  I just hope no one gives that guy any more public funds.

Tulsa could lose $1.3 million due to Blue Dome project delay
 
Developer Michael Sager is pictured in front of the First Street Lofts at 301 E. First St. After several contract extensions, the project, once estimated to cost $3 million, remains unfinished and faces a possible foreclosure action. Project costs have increased to roughly $5 million. JAMES GIBBARD / Tulsa World
By P.J. LASSEK World Staff Writer
Published: 2/13/2012  2:24 AM
Last Modified: 2/13/2012  7:58 AM


After several contract extensions, the once-estimated $3 million project, at 310 E. First Street, remains unfinished with an unresolved foreclosure hanging over it and an increased project cost of roughly $5 million.

If the project ultimately fails, the city will likely lose the $1.3 million in Vision funds, which is actually a loan to be repaid and redistributed to other downtown residential housing projects, said Jot Hartley, attorney for Tulsa Development Authority, the city's contracting entity for the projects.

"The best action by the authority to protect the public's money is to have a little bit of continued patience with Mr. Sager," Hartley said. "It isn't going to cost the city any money, and it may result in a completed project, which is everyone's goal."

Developer and owner of the property Michael Sager, principal of Blue Dome Properties LLC, said he is confident his project will be realized.

Sager said he has redesigned the project to have 23 rental units, 32 parking spaces, and a ground floor that houses S&J Seafood Cafe and Oyster Bar restaurant, the Whiskey Business liquor store and an artisan bakery, he said.

Sager's First Street Lofts was one of four projects to receive a portion of the $10 million in Vision 2025 downtown housing funds, which were allocated as 10-year interest free loans to be repaid in a lump sum at the end of the loan period.

Hartley said the city set up the $10 million as "gap funding" or "seed" money for downtown housing projects. The other three projects - Mayo 420 Building, Mayo Hotel and Lofts and Detroit Lofts - started after Sager's project began and are completed.

"The others projects that have gone on to completion may have been better funded and perhaps not had some of the obstacles that Mr. Sager says he's encounter in the rehabilitation of the building," he said.

Hartley said it is not the authority's "responsibility to defend Mr. Sager's performance or nonperformance of his commitments."

But the authority "is very cognizant of the difficulties that have occurred in completing the project and we are trying to closely monitor Mr. Sager's activities and stay on top of it, requiring information on a monthly basis to determine whether there becomes a point it is no longer a viable project, and if so, what TDA should do in the best interest of the public's money," Hartley said.

In October, the authority granted its fifth amendment to Sager's contract, extending the project completion date to Feb. 13, 2013.

Sager said the bulk of his issues in completing the project has been the national financial credit crisis.

"We've had to weather the real estate market just like everybody else in the country, but we're moving into a better economic period," Sager said.

There also have been unforeseen construction issues that needed to be repaired, and there were added amenities to the project such as a rooftop deck to view the ballpark, a "hospital cart" elevator to ease movement of furniture and other large items, and used-brick walls and wood-framed open ceilings, he said.

"I would suspect there are people out there thinking they are really glad I'm still here fighting because other people might have already quit," Sager said about the difficulties he has had. "My personal commitment is to never walk away here."

In July, American Home Mortgage Co. filed a foreclosure lawsuit in Tulsa County District Court, claiming Blue Dome Properties LLC has defaulted on a loan of $850,000 to redevelop the First Street Lofts and now owes $1.15 million because of accruing interest.

Sager said he is working out the foreclosure issue with the bank and once the leasing agreements and building permits are finalized for the commercial tenants, the lawsuit will be dropped.

Sager said he plans to use the revenue from the commercial businesses "as an economic engine" to get a loan that would be dedicated to not only paying off the first mortgage, but completing the project.

Howard Smith, consultant over the construction of the restaurant, said the lease has been executed for the restaurant and they're just waiting for the city to issue the building permits with the opening of the business around May 1.

"We're very excited to be downtown and a part of this project," Smith said.

Hartley said the issue for the authority is whether Sager has "a viable solution to his lack of funding. Which is obviously the problem. He has presented to us the he does have that solution."

Hartley acknowledged that out of all the downtown residential projects the authority has overseen, this project "has some warts on it."

Sager said he understands how there are questions and speculations over his incomplete project, "but I want it clear that none of the public's money has been misspent."

Kirby Crowe, principal of Program Management Group, who oversees the Vision projects for the county said the money is paid out through invoices, which he reviews.

While this project has taken longer than expected, "the $1.3 million appears to have been appropriately spent," he said, noting there was activity matching the invoices occurring on the site.

Read more from this Tulsa World article at http://www.tulsaworld.com/news/article.aspx?subjectid=334&articleid=20120213_11_A1_CUTLIN888653

Wow, just wow. $1.3 in what should be a revolving fund to seed other housing projects is tied up forever with little hope of recovery and other projects could have been funded and completed long ago, its aggravating.

The "economic engine" plan...I'm spe[e]chless.  

The most telling part of the story: "Hartley said the city set up the $10 million as "gap funding" or "seed" money for downtown housing projects. The other three projects - Mayo 420 Building, Mayo Hotel and Lofts and Detroit Lofts - started after Sager's project began and are completed."

Sager's assertion that the national economic downturn is the cause of this mess is complete junk. How many more projects other than just the three funded with this Vision 2025 money have been completed?

Sager's assertion that the national economic downturn is the cause of this mess is complete junk. How many more projects other than just the three funded with this Vision 2025 money have been completed? A ton, that's how many.

Yep.

In addition to the Mayo, Mayo 420 and Detroit Lofts that were mentioned, you also have the Courtyard renovation job in the Atlas Life Building that was completed.

There are also the three major projects that are currently under construction - the Tribune Lofts addition, the Brady Hotel/Fairfield Inn, and the One Place Development.  That is at least seven major downtown construction projects that somehow managed to be planned, funded and executed in the midst of the economic downturn.

If someone can get me copies of the documents, I'd be happy to review them and pull some liens to see just how screwed the tax payers are... and then point out who the dolt was that left US, as tax payers, in an unsecured position with an unproven and unmotivated developer at the helm.

In a totally random occurrence, I met one of the principles today through work.  They are hoping to open within two months and would love to actually shoot for mid March but Sager has to get his act together and turn the space over to them.  And that still hasn't happened. 

Ok...Who's celebrating St. Pat's with some beers in the Blue Dome?! We are!
Stop by, say hi and grab some St. Pat's giveaways and some info about the new store (Be the first to know all about 'The Beer Cave'). We'll be out in front of our soon-to-open location on 1st Street between Elgin and Detroit!

About a month out.  Should look nice, it is a lot bigger than you would think it would be.  Going to have quite the selection.

Better than Parkhill’s or Ranch Acres?

It will be as much selection as they can fit in their store.  Not sure on the sq footage.  Was mentioning it in relation to the "it's bigger than I thought" comment.

Something every man loves to hear.

Something every man loves to hear.

They are also going to be very open to getting beers that you have to broker in to Oklahoma.  If there is something you really want and willing to pay for it.

Let them know I’d pay a premium for Carib lager or Presidente.

http://www.caribbeer.com/

http://www.presidente-beer.com/

I had some Land Shark last night, closed my eyes and tried to pretend it was Carib, but it just didn’t work.

I have a twelve pack of Fat Tire in my fridge right now. I love the stuff.

+1..I do also.  Well, part of a twelve anyway.  I get down to three and it's off to Caney I go.

They are also going to be very open to getting beers that you have to broker in to Oklahoma.  If there is something you really want and willing to pay for it.

Let them know I’d pay a premium for Carib lager or Presidente.

http://www.caribbeer.com/

http://www.presidente-beer.com/

I had some Land Shark last night, closed my eyes and tried to pretend it was Carib, but it just didn’t work.

Better than Parkhill’s or Ranch Acres?

Their Sign is up:

(http://sphotos.xx.fbcdn.net/hphotos-ash3/541318_334205666638888_285116624881126_920613_20618033_n.jpg)

The clock on the sign should always say 5:05.

Or 4:20

Or 4:20

Per their FB post:

Stocking the shelves.

(http://sphotos.xx.fbcdn.net/hphotos-snc7/582090_355854774473977_285116624881126_974576_517239045_n.jpg)

I walked by Whiskey Business today. Does anyone know when it's supposed to open?

Now if S&J and the Yoga place come to fruition is another question.

...and 310 lofts.

Sagar was on KWGS the other morning talking about the Blue Dome area. I wanted to know more about what was going on down there so I changed the station.

Sagar was on KWGS the other morning talking about the Blue Dome area. I wanted to know more about what was going on down there so I changed the station.

The other liquor store going into downtown, in the old lyon's space of the warehouse market, got it's lic last week...
My understanding is that Joe Hall is behind it... His son is going to own/run it...

my wife and i stopped by the store on saturday.  we had ridden our bikes to fat guys (it helps us feel better about ourselves for eating there) and then rode over to the liquor store.  we chained our bikes up to the lamp post outside before going in.  the owner was there and told us that we were more than welcome to just bring our bikes in and leave them by the door next time.  he was very nice and took time to talk to us about the store and things he would like to do in the future.  we bought 3 six packs of beer and a bottle of tequila in preparation for the upcoming holiday weekend.  it was our first trip to a liquor store on our bikes.  my wife has a milk crate attached to the back of her bike that the six packs fit into perfectly.  the prices all seemed reasonable and it was nice to be able to speak to the owner about his new business. we will definitely be going back.  oh yeah, we got two complimentary shot glasses too.

LOL! The liquor store is one of he places we regularly bike to.  I have a milk crate on my old fat tire bike, but my new panniers just came in for it.  Mrs. C put some on hers a month or so back and likes them far better than the crate.  I’ve managed to get a case of beer and a box of wine in the crate before, but it takes careful packing and no sharp maneuvers.