Chapter 165: Big Shots

[Chapter 165: Big Shots]

"Stop her downstairs." Ryan hung up the phone. After steadying himself, he had to prepare for an important guest arriving soon.

"Teresa, get ready and bring them up once they arrive." Ryan pressed the intercom button again.

About twenty minutes later, Teresa walked in, followed by two sharply dressed middle-aged men; one of them wore thick glasses.

"Peter from the Kushner Group's commercial real estate development division, and this is John, a colleague from the licensing and compliance department," the bespectacled one introduced as he and his colleague shook hands with Ryan.

"Take a seat. Teresa, pour them some coffee," Ryan instructed Teresa.

As Teresa poured the coffee and passed by, the two men kept their eyes focused, briefing Ryan on their agenda.

"Mr. Kushner sent us over for preliminary discussions. Since we haven't done a site survey yet, we brought some materials and pictures of similar cases for you to review," Peter said, pulling out a thick stack of documents from his briefcase.

"However, there's one important point to note. This land is next to a church, which could complicate matters, so you..." Peter's voice trailed off. "Can you handle the construction permits?"

This was directly related to the nature of the land. If it was church land, under the Religious Land Use and Institutionalized Persons Act, it couldn't be used commercially.

"That shouldn't be a problem. Since the fire, the entire church has been abandoned, and the surrounding land has been handed over to a local asset management company," Ryan hinted.

This wasn't something to discuss in detail; it was far beyond the local pastor's responsibilities and would at least involve the local bishop -- someone truly influential behind the scenes.

Ryan was well aware that his involvement came solely from the buzz generated by his nightclub, nothing more.

"If that's the case, I'll give you a form detailing all the legal steps needed," John, from compliance, otherwise known as the "gov affairs department," added while handing Ryan a sheet of paper.

Ryan glanced at it and found a long list of local departments listed in tight print.

First was the city planning department and the local land planning department, followed by the local environmental department, the construction services department, the engineering and development office, the business licensing department, the Florida Department of Revenue, the planning commission, the city council, the local building inspection office...

Just looking at it made Ryan's head spin. If it were solely up to him, he definitely wouldn't touch commercial real estate development.

Meanwhile, a question popped into Ryan's mind. The land was in someone else's hands. Even though his nightclub brought a lot of attention, it didn't necessarily mean they needed to partner with him.

"As long as you have 'friends' in the area, I suppose we don't need to worry too much about that. Now let's talk budget," Peter continued.

"I looked into it, and based on relevant cases, the total building area for the commercial street is around 200,000 square feet. Last year's Winter Park Village renovation project in the Orlando suburbs had an area of about 180,000 square feet, with total costs, including land and construction, coming to around 30 million dollars," Peter reported.

"According to property prices in the Orlando suburbs, costs per square foot range from $10 to $25, making the land costs roughly between $2.15 million and $5.375 million, which can be deducted."

Ryan suddenly realized why they were willing to partner with him -- it was because his wallet was deep enough.

With the economy in trouble, everyone was tightening their belts. Perhaps it was also because of issues related to the land that they couldn't secure bank loans.

He had just promised Taylor he would buy a house, and now he had to fork out a chunk of money...

"What are the construction costs? We don't need a fancy commercial street here; the local residents can't afford that," Ryan inquired.

"Mr. Rivers, this is already the simplest type of commercial street. If it were a high-end street, the total costs would at least double, and considering the land prices in Orlando, similar land in Miami runs from $20 to $50 per square foot," Peter replied.

In other words, there wasn't much room to cut costs.

"I understand. How much is the Kushner Group prepared to invest in this project?" Ryan asked.

"This... Mr. Kushner hasn't mentioned it, so you might have to discuss it directly with him," Peter answered.

...

"What's the matter, Ryan? Are our people there yet?" It was Jared Kushner's voice on the line.

"They've arrived and have spoken quite a bit with me."

"You can handle the local departments, right?" Jared confirmed personally.

"It shouldn't be a problem," Ryan replied.

"How about the church's influence?" Jared pressed on. Jared's father was a big player in the GOP, and the church was a traditional force, closely aligned with conservative interests. In the U.S., the church represented conservative power, with 43% of American adults identifying as Protestants, 20% as Catholics, and only 26% claiming no religious affiliation.

Of course, one couldn't say the church was the only determining factor. In 2008, the young Obama had emerged victorious.

"Almost done," Ryan replied vaguely.

Jared raised an eyebrow at Ryan's response; after all, Ryan had only just arrived in Florida and was surprised to see him connect with the local conservative powers so quickly.

"If you have time, come and join some gatherings. I'll introduce you to some friends," Jared said with a smile.

With the nightclub collaboration looking unlikely, he also had the intention of befriending Ryan.

"Of course, as long as you have time; after all, you're a big star."

"I'll find time," Ryan chuckled.

"By the way, how much is Kushner planning to invest?" Ryan asked again.

"Invest? Ryan, you know the mortgage crisis is still affecting us. Last year, Kushner just spent 1.8 billion on a building, and I'm still worried about our funds, trying to negotiate with others for some equity," Jared replied, starting to play the pity card.

Investing in a nightclub and investing in commercial real estate were definitely on different levels financially.

To put it plainly, this money would need to come from Ryan himself.

Strictly speaking, Ryan had the funds to start the project, but with potential liquidity issues looming, he was cautious about pouring all the hard-earned money into this venture.

Most entrepreneurs operate on a principle of earning one cent, borrowing three, and investing four. Ryan couldn't consider himself a businessman yet; his mindset was still that of a small operator, thinking of making two cents and spending one.

No way could they expect him to put all his assets on the line for this. If that's how they wanted it, he'd rather not discuss it at all.

Thinking things over, Ryan made up his mind to visit the pastor the following day. He'd talk about development progress and see if the pastor could come up with some ideas regarding funding, since the pastor had also invited him to speak at the church.

...

The next morning, Ryan found himself in the reception room behind the church.

"Making moves this quickly? Ryan, even though you are so young, your execution is impressive," the pastor flattered him, carefully stowing away the materials Ryan had given him showcasing similar cases.

Clearly, he intended to show them to others.

"Before we do the official site survey, we have two issues to resolve. The first is compliance."

"We have someone handling that. To be precise, it's already being taken care of. You can fully arrange things for the pre-construction phase," the pastor assured.

"This brings us to the second issue -- funding. The final costs will need around 40 to 50 million, and I'm just a nightclub owner -- I can't afford that much," Ryan feigned helplessness, intentionally exaggerating the costs; the final total was only about half that.

"That's easy. You're an excellent client with a steady cash flow. As long as you're willing, banks will be lining up for you. You can even collateralize your songs and equipment. Plus, the Federal Reserve has already lowered interest rates twice, with plans to reduce them further. This is the perfect opportunity for loans."

This didn't surprise Ryan at all. The pastor wasn't wrong either. The tides had turned, and banks were eager to lend; however, nearly every industry was struggling financially, making Ryan's steady cash flow a "hot commodity" in the eyes of the banks.

Ryan didn't dwell on this topic.

"There's also a third issue. If we're going to cooperate, I need to know who I'm partnering with. If we break ground, someone needs to step forward," Ryan continued.

This was the most critical point.

"Ha! When the time is right, you'll know. For now, someone will be there to assist you; you'll be contacted soon -- this individual will help coordinate things," the pastor said with a smile.

As this would involve someone assisting him, it was also aimed at keeping Ryan accountable.

"Alright, it's almost time; you need to go make your speech in the main church!" The pastor nodded. As part of the community, Ryan needed to show his presence in the church to reflect its "sacred" status in the local area.

*****

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