Arena Construction - Make pitch for ASG in 22/23. pg 95

[MickeyDavis]

If it's paid content you can't post it. You can give a synopsis though

[MadBlueEdwards]

I'll try to do that from work tomorrow. Don't have the login at home. Wasn't anything crazy.

[Matches Malone]

Alex Lasry coming for that ass, Gimbel!

http://www.bizjournals.com/milwaukee/blog/2016/01/bucks-exec-alex-lasry-calls-for-demolishing.html

[EastSideBucksFan]

Lots of overlap between what the Milwaukee Theater offers and what Riverside and Pabst have been knocking out of the park for the past decade. Not sure if demolishing the Theater is the answer, but the WCD needs to be removed or new management put in place for it to get more activity, but any activity would be directly competing with Riverside. Not sure if the town or market can support two basically very similar venues.

It's a hard argument to make though when there's plenty of room on the other side of the BC for development.

I understand the argument about looking to connect it the other direction though.

[HaroldinGMinor]

Alex Lasry coming for that ass, Gimbel!

http://www.bizjournals.com/milwaukee/blog/2016/01/bucks-exec-alex-lasry-calls-for-demolishing.html

They owe $26million on the bonds sold to fund the project. No one is going to pay $26million on top of demolition costs.

[MadBlueEdwards]

Alex Lasry coming for that ass, Gimbel!

http://www.bizjournals.com/milwaukee/blog/2016/01/bucks-exec-alex-lasry-calls-for-demolishing.html

They owe $26million on the bonds sold to fund the project. No one is going to pay $26million on top of demolition costs.

Terrible reasoning if that is their thought process. There's a cost involved in keeping it there too.

[HaroldinGMinor]

Alex Lasry coming for that ass, Gimbel!

http://www.bizjournals.com/milwaukee/blog/2016/01/bucks-exec-alex-lasry-calls-for-demolishing.html

They owe $26million on the bonds sold to fund the project. No one is going to pay $26million on top of demolition costs.

Terrible reasoning if that is their thought process. There's a cost involved in keeping it there too.

Terrible reasoning on whose part? The potential buyer of the property? It's like they are at a point where they can sell it for $10 million and just eat the remainder.

[steger_3434]

The Bucks came to my company demanding $750,000 to be on the spec and the estimated sales we would have toward the construction project is $500,000. That is before cogs. I'm sure they are going to every trade and every supplier and doing this. They are freaking crazy and shows that l and e aren't going to end up contributing nearly as much as people have thought.


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[EastSideBucksFan]

The Bucks came to my company demanding $750,000 to be on the spec and the estimated sales we would have toward the construction project is $500,000. That is before cogs. I'm sure they are going to every trade and every supplier and doing this. They are freaking crazy and shows that l and e aren't going to end up contributing nearly as much as people have thought.


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Care to elaborate? I don't understand the details of your post.

[steger_3434]

The Bucks came to my company demanding $750,000 to be on the spec and the estimated sales we would have toward the construction project is $500,000. That is before cogs. I'm sure they are going to every trade and every supplier and doing this. They are freaking crazy and shows that l and e aren't going to end up contributing nearly as much as people have thought.


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Care to elaborate? I don't understand the details of your post.

Don't want to get too much into it but construction projects have specifications for suppliers and products. They are demanding money to be on the approved specification list and not just a little bit of money. On top of that commercial sales are low margin jobs for suppliers and being on the specification doesn't mean we can charge whatever we want for our product. Imagine them going to every company that will be supplying product to build and finish this project and asking for 3/4 of a million dollars.


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[MadBlueEdwards]

Bucks picked JP Cullen & Sons to be the general contractor on the practice facility.

http://www.bizjournals.com/milwaukee/news/2016/01/29/milwaukee-bucks-select-general-contractor-for.html?ana=e_du_prem&s=article_du&ed=2016-01-29&u=mdd%2F5yHEqHKKDayMSH%2BKEg0bc6adab&t=1454102141

[MartyConlonOnTheRun]

The Bucks came to my company demanding $750,000 to be on the spec and the estimated sales we would have toward the construction project is $500,000. That is before cogs. I'm sure they are going to every trade and every supplier and doing this. They are freaking crazy and shows that l and e aren't going to end up contributing nearly as much as people have thought.


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Care to elaborate? I don't understand the details of your post.

I'm still super confused even after the second post. What i got: The Bucks are asking for $750K from the company that would be the supplier because the supplier would supposedly make money?

[EastSideBucksFan]

The Bucks came to my company demanding $750,000 to be on the spec and the estimated sales we would have toward the construction project is $500,000. That is before cogs. I'm sure they are going to every trade and every supplier and doing this. They are freaking crazy and shows that l and e aren't going to end up contributing nearly as much as people have thought.


Sent from my iPhone using RealGM Forums

Care to elaborate? I don't understand the details of your post.

I'm still super confused even after the second post. What i got: The Bucks are asking for $750K from the company that would be the supplier because the supplier would supposedly make money?

Yeah, I honestly don't get it either.

Steger makes it sound like they are mafia style shaking down suppliers to pay for the rights to be a supplier.

[steger_3434]

Look guys. They are demanding $750,000 to be on a spec list. Other companies can pay to be on the list as well. The entire project will net SALES of $500,000 but figure a profit margin of 10% on big commercial projects that leads to a profit of $50,000. So we pay $750,000 to make $50,000? The goods we sell aren't free. They cost money to make and then sell. As a company we gross $5 billion so it's not like we don't do these huge construction projects all the time. We are in every building currently in the country and a company asking for that much JUST to maybe be the supplier is CRAZY


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[EastSideBucksFan]

Look guys. They are demanding $750,000 to be on a spec list. Other companies can pay to be on the list as well. The entire project will net SALES of $500,000 but figure a profit margin of 10% on big commercial projects that leads to a profit of $50,000. So we pay $750,000 to make $50,000? The goods we sell aren't free. They cost money to make and then sell. As a company we gross $5 billion so it's not like we don't do these huge construction projects all the time. We are in every building currently in the country and a company asking for that much JUST to maybe be the supplier is CRAZY


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Don't get mad. I just don't understand how what you are saying is true. Don't take it to think I'm saying you are lying.

Why would the Bucks think that any company would pay $750,000 to make $50,000?

That doesn't make sense to me. I can't understand it.

[steger_3434]

It doesn't make sense at all. The only reason I can see is they think their are millions to be made when that isn't the case. Needless to say we aren't paying that amount or anything remotely close. The northwest mutual project is the largest in state history and they didn't ask for anything to be on the spec.

I'm guessing these owners are trying to minimize most of their contributions.


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[MartyConlonOnTheRun]

It doesn't make sense at all. The only reason I can see is they think their are millions to be made when that isn't the case. Needless to say we aren't paying that amount or anything remotely close. The northwest mutual project is the largest in state history and they didn't ask for anything to be on the spec.

I'm guessing these owners are trying to minimize most of their contributions.


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I wonder what their angle is on this? Gradually decrease until someone bites? Make it crazy so when they sign up one of their bodies using the gov money later and be able to say no one else wanted the job? Or do they think it's just a big advertising project for construction firms that they may do it at cost just to get their names in the news?

[MadBlueEdwards]

Look guys. They are demanding $750,000 to be on a spec list. Other companies can pay to be on the list as well. The entire project will net SALES of $500,000 but figure a profit margin of 10% on big commercial projects that leads to a profit of $50,000. So we pay $750,000 to make $50,000? The goods we sell aren't free. They cost money to make and then sell. As a company we gross $5 billion so it's not like we don't do these huge construction projects all the time. We are in every building currently in the country and a company asking for that much JUST to maybe be the supplier is CRAZY

I'm sorry. I'm sure it's slightly frustrating trying to explain this, but I'm...not smart. This is how I'm understanding this...

- Your company sells products used for construction projects.
- In order to sell these products, a company must list them on something called a "spec list".
- The company actually performing the construction selects products to purchase for the project from said list.
- Multiple companies can have their products on the same list.
- Your company stands to make around $50,000 on the arena project.
- The Bucks are charging companies $750,000 just to be on the list with no guarantee that your products are actually purchased.

Is that all correct?

If so...wow.

[0BobLobLaw0]

http://www.bizjournals.com/milwaukee/blog/2016/02/bucks-detailed-arenaplans-may-be-ready-by-mid.html?ana=twt

Have they been on time for anything?

Not a subscriber so I couldn't read to much of the article.

[trwi7]

http://www.bizjournals.com/milwaukee/blog/2016/02/bucks-detailed-arenaplans-may-be-ready-by-mid.html?ana=twt

Have they been on time for anything?

Not a subscriber so I couldn't read to much of the article.

Maybe some of the hearings in Madison? These guys are awful though.