So my limited experience with a new build did not yield cap ex expenses with what you are proposing. 

Redeveloping into mixed use live/work/play projects has been the most common proposed solution the past few years in my area. 

If the proposed loan is too risky because (1) chance of default is too high and or (2) cost of foreclosing too high or time it takes too long and we would otherwise decline the loan, we might offer to purchase the subject property for a price equal to the loan amount.  

I have had no luck trying to propose seller financing through realtors for on market listings.Bottom line, either spend some time and/or money marketing direct to seller or networking with investors that have been around for awhile.

A nice potential boost for downtown Louisville. 

i and others will happily answer any question you have. i invest in Pittsburgh, and in fact, I'd probably try to talk you OUT of investing in Pittsburgh if you proposed it, since you don't have a network here.investing out of state is certainly possible, but it's also way more difficult than advertised. 

I proposed the question if the separation of funds was for asset protection.  

I second the proposal to get @Brian Burke's book The Hands-Off Investor.

The purpose of the meeting is to discuss their latest STR ordinance proposal. 

What terms are they proposing?