Arcade Bids due May 15 - this Friday!

A short - unadvertised - bid deadline of May 15 has been set for the Arcade building by mortgage holder Prinsbank. Landmarks Illinois quickly updated its "Ten Most Endangered" listing on the Arcade to include downloadable copies of the bid documents.

http://www.landmarks.org/ten_most_2009_1.htm

Prinsbank has not indicated whether it will arrange for an open house for prospective bidders to view the Arcade building before Friday's deadline. Thus far, according to an interview with Prinsbank's Joe De Groot published in the Suburban Life Prinsbank is 'looking more at the financial aspect of the purchase rather than the buyer's plans or knowledge of historic restoration.'

http://www.mysuburbanlife.com/riverside/newsnow/x362989322/Bid-deadline-approaching-to-submit-Arcade-building

A decision to simply unload the landmark Arcade as quickly as possible has repercussions. For example, in the words of "scafuri" who commented on the Suburban Life article:

". . . I am not suggesting that the bank give precedence to the historic aspect but they should at least give it a fighting chance to survive by allowing a better time frame to find purchasers. I do not live in Riverside but often visit. . . . (The Arcade) is the only beautiful centerpiece left in town. I have moved around the country alot and will certainly remember the PrinsBank negatively when I am in their locality."

While Prinsbank is ostensibly "letting those who have already shown us interest get the first chance" it would seem that free advertising to a wider audience such that offered by Landmarks Illinois would be in Prinsbank's best financial interest. What would Prinsbank's shareholders think?

In our view, Prinsbank should:

1) extend the bid deadline,

2) work with Landmarks Illinois on the marketing and

3) have an open house for all prospective bidders prior to the deadline.

In this way, Prinsbank could increase its potential recovery on the property and the Arcade would have a decent shot at attracting a reputable and experienced purchaser.