Thursday, March 15, 2007

Trump Tower Tampa Update

This is the lastest update regarding the development status of Trump Tower Tampa which is timely due to today's St. Pete Times article.
Simdag now has a signed Letter of Intent with The Related Group of Florida, who will serve as a co-developer of the project. The Related Group has a long history of developing luxury high-rise buildings in South Florida, and are currently developing several Trump projects in the Miami area. PCL will remain as the General Contractor for the Trump Tower Tampa project.
With The Related Group involved with this project, they are confident that they will be able to negotiate significantly better construction costs and much more favorable lending terms. Related has already begun re-bidding subcontractor contracts, and those bids are all due this week. They will be reviewing all new subcontractor bids, and will be awarding contracts shortly. Once this process is complete, they will be able to go back to their lenders with a new construction cost figure to secure the required financing.
Simdag also states that soil and geotechnical studies are complete, and they now have the remedy for the soil abnormalities which have contributed to the construction delays. The additional costs for these remedies are not uncommon in large scale developments and are being factored into the new construction financing.
According to Simdag, the purchase price as stated in the original purchase contracts will not be affected.
According to Simdag the new completion date has been moved to late 2009 with construction scheduled to restart in june 2007.

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