Project assistance completion report [: inner Kingston employment]

While the cost of the project exceeded all estimates, overall it was a success. (1) KRC completed the rehabilitation of the building, and the complex is 100% tenanted. (2) The project created 134 new jobs (though the goal of 400 was not even approached). (3) Building rehabilitation played an important role in improving the environment in the inner city. (4) The project exposed KRC to the problems of downtown redevelopment and enabled it to develop more effective approaches in implementing the larger follow-on project, Inner Kingston Development (5320120). Several lessons have been learned and applied in the follow-on project. (1) Because inner-city rehabilitation involves improving an existing structure, it is more difficult to complete on time and within the budget than is new construction. (2) To determine whether a building rehabilitation project is cost-effective and appropriate to pursue, it is essential to undertake a detailed feasibility study of both the costs of construction and a financial projection of the expected operating costs and expenses. (3) Acquiring property or negotiating development arrangements with downtown property owners was much more time-consuming than expected. (4) Tight review procedures and closer monitoring of construction work is needed to avoid costly overruns and construction delays. (5) Real estate projects require a great deal of front-end investment in determining the feasibility of the projects and completing the legal, technical, and architectural work that is necessary. (6) Regular and competent management by implementing agencies and A.I.D. is needed to insure the timely and efficient completion of real estate development projects.