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In addition, when the budget for construction of the
proposed atrium was approved in 1984, the Bank was advised by
both Ross Consulting and Eastdil Realty that the cost of
construction would far exceed any increase in values to the
adjoining properties. Indeed, the Eastdil report noted that
“[c]onstruction of the atrium will inhibit the Bank from selling
its Broadway-Lincoln property as one unit. This may reduce the
proceeds from the sale of the Bank's property on the block."
(Emphasis omitted.) Ross Consulting recommended that “UBC should
build only if legally or `morally' bound to”, and Eastdil Realty
recommended “against building the atrium if the Bank can obtain
release from its commitment for less than $22 million less
whatever `recognition value' the Bank believes the atrium would
9(...continued)
You know, we could put our money to work in lots of
different ways.
And so I think that it is fair to say that around
that time, we started--we were dealing more and more
with real estate, and we were thinking more and more
about it is it logical, do we need it all, should we
move some parcel.
I can't remember exactly which we were talking
about at the time, but it is definitely my recollection
that we were, you know, considering the validity of
holding all of this real estate.
The minutes of the Committee meeting on Sept. 10, 1981,
provide the earliest documentary evidence that the Bank
considered sales of its real estate:
It is the Bank's intention to investigate the
possibility of selling various elements of our real
property as a means of generating additional capital.
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