Martin Selig, a prominent office developer in Seattle, is facing a growing list of unpaid bills that is raising concerns in the city. 

In the spring, it was revealed that Selig — whose financial troubles have been exacerbated by the pandemic — had become delinquent on $2.2 million in property taxes for five of his downtown buildings in King County, the Seattle Times reported.

The buildings, like many others, have struggled with high vacancy rates during the pandemic, putting financial strain on the developer.

In early August, the city of Seattle sued Martin Selig Real Estate over $172,200 in unpaid fees related to street use permits for construction projects. 

However, the biggest concern for Selig and his company is the looming $2.7 million bill of fees, penalties, and interest owed to the Metropolitan Improvement District, a city-backed initiative aimed at revitalizing downtown Seattle in the wake of the pandemic. 

The district relies on fees assessed on over 1,000 downtown property owners to fund various improvement projects, including trash and graffiti removal, security, and public programming.

Selig’s delinquency accounts for a significant portion of the district’s outstanding debts, and its resolution is critical for the district’s recovery efforts. The district’s budget for the 2023-24 fiscal year anticipates revenue of $18.5 million from its ratepayers, most of whom have been diligent in paying their fees.

While Martin Selig Real Estate has expressed its intention to address these outstanding balances, the city’s response has been less clear. The Office of Finance referred the unpaid district assessments for Selig’s properties to the City Attorney’s Office, but a resolution remains uncertain. The city’s limited tools for corrective action in such cases, compared to property tax collections, have complicated the situation.

Despite these challenges, the Downtown Seattle Association, which manages the district, maintains that Selig’s delinquencies and those of other district members do not threaten its operations. They attribute this resilience to higher-than-expected assessment revenue collection during the pandemic, which has allowed them to cover additional expenses from reserves.

However, critics like Steve Horvath argue that the failure to collect assessments from large companies like Selig’s unfairly burdens smaller property owners who diligently fulfill their financial obligations. Horvath sees this as a glaring example of privilege favoring larger entities and calls for equitable enforcement of district assessments.

Selig, 86, who is known for his resilience in previous downturns, is facing unprecedented challenges in the city’s current office market slump caused by the pandemic, the Seattle Times reported.

Despite his reputation as a deal-maker, Selig’s office portfolio has an uncomfortable 19 percent vacancy rate, significantly higher than the single-digit rates seen in 2019.

Some of his newer properties, such as the Federal Reserve building and 400 Westlake tower, are struggling to find tenants.

— Ted Glanzer

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With the product on the field a work in progress, Chicago Bears fans have perhaps a little more cause for optimism with things off the field.

Bears President Kevin Warren said in a letter to season-ticket holders that the team has reopened discussions with the city about building a new indoor stadium downtown, Front Office Sports reported.

That plan was thought to be dead, the outlet reported.

Mayor Brandon Johnson and Warren had been exploring potential stadium sites in Chicago, as the Bears look to move on from Soldier Field, where they’ve played for almost a century, Crain’s reported.

The team appeared locked in to building a $5 billion stadium district in Arlington Heights when it finalized a deal to pay $197 million for the former Arlington International Racecourse in February and began its demolition shortly thereafter. However, the Bears were forced to look elsewhere after being hit with a $197 million property tax reassessment and have since explored sites in other suburbs, including Naperville.

Warren said in the letter that suburban sites were still in play, but the main focus was to keep the team within city limits, Front Office Sports said.

Johnson, for his part, has made a significant effort to keep the Bears in Chicago. One major challenge, however, is finding enough acreage for a potential entertainment district along with a stadium, like the team was planning in Arlington Heights. 

Developer Bob Dunn of Landmark Development proposed revamping Soldier Field as part of his One Central megadevelopment proposal just west of the existing stadium. But the Bears haven’t expressed interest in staying at its long-time home, and Dunn’s overall plan requires $6.5 billion in state subsidies to fund work on the commuter railway station and tracks that would be incorporated into the project.

Warren’s letter to fans was sent just before the Bears kickoff their 2023-24 season on Sunday against their archrival, the Green Bay Packers. Last year the Bears had the league’s worst record and the most losses in franchise history (3-14) as the offense struggled with a young quarterback in Justin Fields. This year, experts predict the Bears will be more competitive, but will likely still have a losing record.

— Ted Glanzer

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The legal fight between Camden and developer Carl Dranoff is at an end, but the animosity won’t likely to fade anytime soon.

The city announced the settlement between the two sides last week, the Philadelphia Inquirer reported, ending a five-year dispute over tax payments on luxury apartments. Mayor Victor Carstarphen hailed the settlement, saying it would add $7.8 million in monetary and property assets to its coffers.

Terms of the settlement weren’t publicly disclosed, but both sides said Dranoff will pay Camden $3 million, as well as additional tax payments of $150,000 for each of the next two years on the waterfront Victor Lofts apartment building, which Dranoff redeveloped from a former record factory in the early 2000s.

Dranoff is also ceding the development rights to the dilapidated, city-owned Radio Lofts site, as well as a neighboring parking lot. 

Carstarphen managed to incite the developer in his statement, claiming Dranoff was a bully and “do-gooder pretending to be a part of our revitalization efforts when, in fact, he was lining his own pockets.” Dranoff labeled those comments as “false, misleading and defamatory.”

Dranoff’s issues with the city may stem from a dispute with Democratic power broker George E. Norcross III, who released a statement of his own blasting Dranoff after the settlement was announced.

State and federal officials have been scrutinizing Norcross’ involvement in several real estate deals in Camden, along the Delaware River. Dranoff claimed in a deposition to have had a falling out with Norcross involving a proposed deal in 2016 and that officials loyal to Norcross have been hindering Dranoff ever since. 

In 2018, Dranoff resorted to suing Camden after the city refused to transfer a tax agreement linked to the Victor from the developer to Aimco, thwarting the latter’s $71 million purchase of the property. Norcross’ brother is a lawyer who has advised the Camden Redevelopment Agency.

— Holden Walter-Warner

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A coalition of prominent figures from Norman’s civic, business, and education sectors has revealed ambitious plans for a groundbreaking $1 billion entertainment district. 

The proposed development, spearheaded by “Team Norman,” seeks to transform the city with a slew of amenities, including a new arena for University of Oklahoma athletics, hotels, offices, shops, restaurants, bars, entertainment venues, and housing for thousands, the Oklahoman reported.

The coalition has emphasized that the project will not burden city or county general funds nor necessitate a tax increase. Instead, it plans to fund 80 percent of the venture through private investment, with the remaining 20 percent coming from public sources. 

Norman Mayor Larry Heikkila suggested that tax increment financing and potentially revenue bonds would be employed to secure the public portion of the funding.

TIF districts are instrumental in harnessing tax revenues generated by new developments to fund public improvements in the area. In some instances, bonds are issued and repaid with increasing ad valorem taxes, while others function as rebates.

University of Oklahoma President Joe Harroz Jr. expressed support for the project, particularly the replacement of the Lloyd Noble Center. 

While the university won’t shoulder development costs, it will contribute by paying rent for the arena and other facilities. These revenues are earmarked to support the use of revenue bonds, which are financed through increased development-generated income.

Lawrence McKinney, president of the Norman Economic Development Coalition, highlighted the city’s housing shortage and the need to attract new residents and businesses to avoid stagnation. The coalition envisions a district that aligns with residents’ desires for walkable, safe, green neighborhoods that are inclusive of an economically diverse population.

Situated near the University North Park district, the development will front Interstate 35, specifically at Rock Creek Road and 24th Avenue NW. The proposed development would include a venue designed to host various events, from concerts and shows to OU basketball games and women’s gymnastics competitions. An outdoor plaza will be adjacent to the performance venue.

This announcement comes five years after a previous effort, which sought tax increment financing but was withdrawn by the OU Foundation due to opposition at City Hall. 

— Ted Glanzer

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Gisele Bündchen — the Brazilian supermodel, cookbook author and ex-wife of retired quarterback and Super Bowl ring accumulator Tom Brady —  has purchased a new home in Southwest Ranches, Florida.

Flamboyant Tree LLC, which is tied to Bündchen, paid the unidentified sellers just over $9 million for the 7.5-acre property, which was listed most recently for $10.5 million, the Wall Street Journal reported. The sellers bought the property in 2003 with $1.65 million.

Laura Valente of Global Luxury Realty LLC represented Bündchen, while the listing agents were Chad Bishop and Saddy Abaunze Delgado of ONE Sotheby’s International Realty.

The property has a 5,200-square-foot home and, in keeping with a sporty family — Bündchen has two children with Brady — two equestrian rings, a full soccer pitch, an infinity pool, outdoor kitchen and man-made pond with fish, the outlet says.

The town and surrounding area are known for being a big horse-riding community, Bishop told the outlet.

But the property will serve as more than a mini-sportsplex. Bündchen plans on having chickens and other farm animals, in addition to horses, on the property.

“They will make it a real animal-friendly property,” Bishop told the WSJ.

Bundchen is no stranger to owning property in South Florida.

She paid $11.5 million for the waterfront home at 1400 Biscaya Drive in Surfside in October 2022 via a trust, records show. The 6,600-square-foot house, built in 1981, is likely a teardown. It sits on a 0.4-acre lot across the water from the Indian Creek mansion that Brady is building. 

The Surfside property has 92 feet of waterfront. The seller, Bay Drive BJ Partners LLC, lost money on the deal. It paid $11.8 million for the property months earlier, in April of last year. 

Joel Lusky with The Brokerage South Florida Real Estate represented the seller in the sale to Bündchen, according to Realtor.com. Vanessa Frank with One Sotheby’s International Realty represented Bündchen.

Records show that Bündchen, via an LLC, also paid $1.3 million for the small, non-waterfront home at 8850 Emerson Avenue in Surfside in February 2022, months before she and Brady announced their divorce. The deal may have introduced her to Frank of One Sotheby’s, who was the listing agent for 8850 Emerson Avenue. The 1,540-square-foot, three-bedroom, two-and-a-half-bathroom house, built in 1940, was renovated and sits on a 0.1-acre lot. 

Brady and Bündchen paid $17 million for the lot at 26 Indian Creek Island Road in late 2020, via an LLC managed by Fontainebleau Development executives. 

The couple knocked down the home on the nearly 2-acre property and began building a new mansion, which Brady continued after the couple’s divorce, according to records.

— Ted Glanzer

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The biography, by Walter Isaacson, portrays Mr. Musk as a complex, tortured figure.

American Airlines and some aviation unions say carrier is exploiting a regulatory loophole. JSX is pushing back, saying rivals can’t handle the competition.

Known as Dr. Max (he was not a medical doctor. but had a Ph.D. in neuroscience), he reported on health and science with an easygoing gravitas.

Engineers at the tech giants built tools years ago that could put a name to any face but, for once, Silicon Valley did not want to move fast and break things.

The state’s retirement fund staff are among the country’s highest-paid state employees.