Norfolk
Another week, another pile driver down.
Workers at downtown's Granby Tower site began dismantling a second pile driving crane this week, after the first was taken apart last week. The crew, from Ford Pile Foundations of Virginia Beach, said Thursday they will next take down the third and final pile driver, as well as two smaller cranes for moving the concrete piles for the building's foundation.
A crane rental company also was on the site Thursday inspecting one of its cranes prior to hauling it away. That firm, Richmond-based W.O. Grubb Steel Erection Inc., has filed liens against the project totalling nearly $80,000.
Despite major pieces of equipment being removed from the site, Granby
Tower developer Buddy Gadams said Thursday the $180.5 million luxury condominium tower will still be built.
"Absolutely. Not a doubt in my mind," he said of the project, announced in 2004.
Gadams, chief executive of Norfolk-based Marathon Development Group, would not say how much money is owed to Granby Tower's subcontractors and suppliers. But he said they will be paid. "When the project starts up again, they'll be promptly paid and we'll finish the job," he said.
As he said last week, Gadams said Thursday that he expects to close on a roughly $145 million loan for the project before the end of this month, with construction starting "very shortly" thereafter.
Gadams said the pile drivers are being taken away because of escalating costs related to keeping them while new financing is arranged. Work halted on the 34-story tower, which would be Norfolk's tallest building, on Sept. 18. Gadams said at the time that the project lost its financing amid difficulties in the credit markets.
Removing the pile drivers was the decision of Ford Pile Foundations, Gadams said. Trey Ford, Ford Pile's vice president, did not return calls Thursday. Officials with the project's general contractor, Turner Construction Co., also did not return calls.
Gadams said the pile drivers should have been taken away when construction initially stalled. When construction does restart, it will resume with two pile drivers, Gadams said.
Marathon is attempting to build Granby Tower despite challenging conditions in the housing and financial sectors. Yet the situation in Hampton Roads is better than in such "overbuilt" markets as Florida and California, Gadams said. He described Hampton Roads as a stable market with stable employment.
"I think that's why the lenders like it so much," he said, declining to identify the latest prospective financiers.
Mayor Paul Fraim said Thursday he and Gadams met last week with people who "gave every indication" that they would loan at least part of the money needed for the tower. He declined to reveal the group's identity.
"They seem to be very favorably impressed with the project and wanted to be a part of it," Fraim said.
Councilman Barclay C. Winn said Thursday he was told earlier this week that Gadams had joined forces with a Chicago firm and that the project was one step away from financing.
City leaders say the project is important to the future of Norfolk's downtown and have pledged a $22 million subsidy for the project, to be paid when the building is complete.
The liens, filed late last month by Grubb in Norfolk Circuit Court, seek $79,387 from the project's owner, 515 Granby LLC, which is managed by Gadams. In court papers, the crane-rental and construction company said it was owed the money from the rental of two cranes used in connection with driving and installing foundation piles for Granby Tower.
The liens, one for $52,500 and another for $26,887, were filed Nov. 26 and 27.
Additionally, Gadams said Thursday that the scope of the project has changed slightly. Ten townhomes planned for the site's southern edge have been dropped, leaving 292 residential units. Instead, he will be adding about 20,000 square feet of additional retail and office space, bringing that total up to roughly 50,000 square feet.
Staff writers Tom Shean and Harry Minium contributed to this report.
Gregory Richards, (757) 446-2599, gregory.richards@pilotonline.com
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Re: Frank the Tank
People are selling their homes for lower prices at some price ranges, real estate markets are local and not national. We are not experiencing a huge drop in prices. People are panicing now when they shouldn't. You should expect your home to sit a little while. After all, think of they dynamics of it, you have to find someone wanting to buy at the time you want to sell, that wants your exact house. The odds are never that good. Everyone with bad credit are the ones in foreclosure, and were the "good" renters 1-3 years ago. Slowly those people will lose their homes and go right back to renters until they could really afford a home. It's all cyclical, study economics and see.
Here's a question
Here’s what my question is. When are people going to start selling their homes for lower sales prices? Anyone w/ common sense knows that inventory is out of control, foreclosures are increasing at an alarming rate, and banks are losing financing options left and right. Sellers need to start decreasing their sales prices to get their houses to sell. Housing values are still overinflated. People are going to lose a ton of money and there will probably be ample job losses. I don’t think it’s feasible for the Gov’t to be expected to bail out homebuyers and banks who got in over their head in recent years. Granby Tower should never happen and if it does there should be a revolt on the steps of City Hall. When you can’t find financing, you should read the writing on the wall. Hey hey, ho ho, Granby Tower has got to go…..
$140 million loan!!!!!!
$140 mil (loan) @ 10-15% interest = $1 million + a month interest on the loan.....i hope this condo can save granby st....there is nothing on the street now....look at the 4 sale and rent signs...
Granby Tower
This was an interesting story. Thanks.
How many lies can someone beleive?
Buddy Gaddams is just like those who gave him the tax dollars. We all know now that the federal government taking on the property to expand the courthouse would have been best for the city. We all know why it did not happen; no kick backs to the mayor and his cronies. My question is when and what recourse do we have to hold this developer, the mayor and his cronies from the country club accountable for this? It is an ugly sign of the ineptness that comes when matters are built on lies.
This is shameful
When you finish the Granby Tower ...
I have some waterfront property in Sante Fe, New Mexico, I'd like you to develop. I'll have my people contact your people, Buddy!
The real question
The real question is when are stuck home sellers (both new construction and used homes) going to take down their towering asking prices? Inventory is skyrocketing, foreclosures are jumping (I see lots of REO), and financing is disappearing rapidly. Sellers are going to have to start cutting huge discounts. I'm sure many people will follow the market down, but pretty much anyone who bought in the past few years without huge down payments are going to be underwater. Those with large down payments will simply loose lots of money. There will be job losses. There will be bank insolvency. There will be failed attempts from the gov't to bail people out -- really them trying to bail out the banks. And I will continue to shake my head. Meanwhile, I can laugh at people trying to sell condos for $400K+ that are way worse than what you can rent for $1100 in Hampton Roads. There are so many places for rent it's not funny, and you can smell the desperation in many of the for sale listings. This was all predictable, and avoidable. Granby Tower will never happen, and anyone who buys in there will loose money for a long time.
Gosh just think how much tax revenue this property could have
produced over the last 2 years had it been developed for a use. Instead our council decides to try and punch a square peg in a round hole. Interesting the argument for giving $22M of our property taxes to a wealthy developer was to attract these 500 wealthy residents downtown to revitalize downtown. If they are so darn wealthy, why subsidize the building?? Spread the $22M over the price of the units. Just think Paul, you would have attracted even wealthier people downtown if the prices were higher. Tax dollars should NEVER EVER be used for corporate welfare!!! By the way Paul, it cost a pretty penny in hauling, assembly, assist rigs, etc. to mob and demob cranes and pile leads. 28+ years in the business.
Interesting
If financing will be there in about 2 weeks, why bother taking the cranes down? Fishy story.