Two payments totalling $613,240.00 are due and payable this year according to DLGF records. Elzie Higginbottom’s East Lake Management took over day to day management of the building in 2017
Click for larger image
March 17, 2018-Payments for the $3.875M bond floated to finance Vance Kenney’s 504 Broadway Building became due and payable this year. The project was financed in 2014 but payments under the terms of the bond provided for interest only in the years 2015, 2016 and 2017. That means the first full payment, $308,960.00, was due and payable on January 15, 2018. Generous Gary taxpayers will make another $309,600 mortgage payment on behalf of Vance Kenney in July, 2018. Under the terms of the financing agreement, Vance Kenney and 504 Redevelopment, LLC are not required to pay back one cent of the $3.5M they were given. In addition to providing Vance Kenney and crew with $3.5M cash toward a building that cost a mere $250,000, the City paid for demolition of two adjacent buildings and paved a parking lot next to the building. There has never been an accounting of the $3.5M provided to 504 Redevelopment and there does not appear to have been anywhere near $3.5M in repairs done to the building.
The Gary Sanitary District and the City of Gary Department of Redevelopment now pay rent to 504 Redevelopment, LLC. In a July, 2017 resolution, which you can see above, 504 Redevelopment notified the Gary Sanitary District that future rent payments were to be remitted to East Lake Management-a company controlled by Daley insider Elzie Higginbotton.
As East Lake takes over, the City is beginning to push phase II of the 504 Redevelopment project. According to documents obtained exclusively by the Gazette, that project is expected to cost taxpayers over $40M.
If all of this seems confusing, it is designed that way. The City of Gary is now poised to “sell” the Genesis Center to political insider and Aruba travelling companion Rinzer Williams. The City of Gary Department of Redevelopment is also preparing to sell the building located at 839 Broadway. Should residents expect more creative financing in those transactions?
Please tell us what you think in the commments.