Tomorrow’s City Council meeting (1pm - TWC channel 11) contains an agenda item that is critically important to the continued Fayetteville St. renaissance. Plans for the City Plaza, situated between the two former Hannover towers, aim to offer a living room for the city. However city leaders and one of the plaza’s owners, The Simpson Organization (an Atlanta-based real estate firm), have not been able to agree about certain undisclosed terms.

It has been speculated that the controversy centers around issues with the underground parking garage. The plaza’s opening was supposed to coincide with that of the new convention center Marriott hotel, but tomorrow City Manager Russell Allen will formally present a plan for the City of Raleigh to condemn Simpson’s land and move forward with plaza construction.

Simpson had earlier agreed to design, construct, and fund the four pavilions, as well as furnish other improvements to the space. It is unclear what Simpson’s involvement in the plaza’s construction will be should the condemnation proceed. Boyd Simpson, though, is clearly unhappy about the situation:

Members of Council, Ladies and Gentlemen,

Attached above is a letter delivered to Russell Allen, City Manager at 11:33 this morning in connection with the proposal by the City to proceed with condemnation of our property interests.

I urge you to read the letter and take the facts thereof into consideration in your deliberations on this matter. We have offered to speak directly with the City Council in open session but have no response from Mr. Allen in that regard. As noted in our letter, we will be present at the meeting to address any questions which members may wish to address to us, unless our attendance is prohibited by the City or the the City Manager. Our legal counsel has been informed by the City Manager that your meeting will be in closed session and that we will not be allowed to address you. If you wish to hear from us we will be available.

We have always been ardent and open supporters of the City Plaza project and remain so. The condemnation of our property interests is neither necessary nor wise. It will delay the project, increase its costs, and reduce its quality. The physical, legal and practical interfaces between City Plaza and our property present challenging and complex technical issues which will not be efficiently dealt with in a condemnation context. We have never sought any compensation for the substantial use of our private property in the context of the public project, but rather have continually offered to make investments exceeding 1 million dollars in the betterment of the project. The council has previously approved, on a unanimous basis, the project design which was consensually developed by the City and TSO, as well as other stakeholders. We, as well as the City have invested considerable time and money in the creation of the project. If condemnation proceeds we will be entitled to compensation, the full protection of our property rights and will have no incentive to make investments to better the project. Common sense suggests that such a result would not be in anyone’s interest. We have no incentive to delay the project and any claim to the contrary is without merit and untrue.

We have, as noted in the attached letter, offered the City an irrevocable license which will allow it to proceed immediately with construction but, as of this hour, have not received any responsive comments from the City Manager or City Attorney. We have also delivered to the City a copy of the City Plaza agreement executed by us. We have received no comments from the City to this most recent draft. We remain committed to the negotiation of a consensual resolution and urge the City to maintain the same posture. We are available at any time to meet with members of the City in this regard. The beginning of a condemnation process is not productive to the conduct of consensual negotiations, and should be avoided.

It is in the best interest of the City of Raleigh, the private parties involved, and the public that an unnecessary adversarial condemnation process be avoided. We would appreciate your support in this view. The progress of the City requires careful and thoughtful interface with its citizens and property owners and we are fully committed to an open, transparent approach to these matters.

I am available at the telephone number below should anyone wish to speak with me directly about the matter. I can also be reached on my cell phone at 404 992 4096.

Sincerely,

TSO Fayetteville, LLC

A. Boyd Simpson, President
The Simpson Organization Inc.

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