Empire Gets Extension
The Raleigh City Council voted unanimously to grant a 4-month extension to Empire Properties for their proposal to develop a piece of city land known as Site 4. The City Manager’s suggestion was to reopen the bidding process to interested developers, as Empire has missed deadlines for submitting site plans and cannot prove any serious financial support for the project. The City Council approved a Memorandum of Understanding with Empire Properties to develop the property 24 months ago.
One of the issues at hand is the agreement for the widening of Salisbury Street in front of the property. The widening is needed according to preliminary site plans, and Empire agreed to split the costs of construction, about $100,000 total, with the city. Contract work is done and the city is almost ready to begin the work, but has received no funds for the project from Empire.
The city voted to grant an extension until November 1 on three conditions:
- The funds for widening Salisbury St. be presented
- A site plan be submitted for approval
- No more extensions
While the first two items are clear success criteria, the issue of “no more extensions” is vague. If Empire presents with only an updated site plan and $50,000 funding for the street widening, but no proof of funding, is the project still theirs? If so, then when should they prove funding, and would this be, in fact, an “extension”?
Clearly Empire received preferential treatment in the extension of this agreement based on the merits of their previous work. Their attention to detail in renovating some of downtown’s oldest buildings is obviously appreciated. Hopefully they can excel in creating tomorrow’s historical building at Site 4 as well.
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July 1st, 2008 at 11:18 pm
This reminds me of another time that govt. officials grew tired of granting numerous extensions for signs of compliance:
http://www.state.gov/p/io/rls/fs/2003/17926.htm
If Empire isn’t granted numerous additional extensions, I fully expect to see public protesters, celebrities snidely ridiculing the Mayor in public, a movie which conveniently omits mention of the MOU and numerous extensions, and Cindy Sheehan here to show how dumb our leadership is.
The honest truth is that while Empire has done great work and plans an excellent project, a line has to be drawn. It isn’t fair to the other bidders three years ago to allow the site to go untouched, regardless of the economy.
However, it isn’t like we don’t have plenty of empty lots downtown for other great Empire projects. Hopefully Empire can keep their great momentum going.
July 2nd, 2008 at 8:21 am
Many developers fell into the trap of feeling too comfortable, in the recent past. The whole mess lenders have created was more of a wake-up call. In my opinion, Reynolds & Reynolds made a HUGE mistake by looking for an office tenant to buy their office space in The Hillsborough. They should have moved forward with the 32-story version and lease instead of sell. Campbell University Law School would have been an ideal tenant, but the office space wasn’t there for them and they ended up in the low-rise across the street
Empire Properties has bitten more than they could chew, that is for sure. However, they deserve one more chance and I am glad that the City Council gave it to them. What harm a few more months would do? If Russel Allen wants to see things moving, he should recommend putting out RFPs for Sites 2 and 3. The city officials were supposed to have this done some time ago… What happened? By doing so, we achieve three things:
1) Avoid any further delays and move forward with some more redevelopment.
2) Put pressure on Empire Properties as more competition is under way.
3) Test some new guidelines for RFPs. If a project is not within the scope of the entire redevelopment effort, then issue another RFP, or extend the deadline until someone with both vision and deep pockets brings something nice to the table.
Dana, you brought up an interesting and valid point… There are more lots out there for redevelopment, some of which belong to the Empire Properties. Two of them come to mind, right away: the lots adjacent to Lincoln Theater and Clarion Hotel. The problem is that Empire Properties will then have to either negotiate parking space, or include it in their building(s). That would add significant cost to the price tag of Lafayette, which is why I am confident that Greg Hatem and his team will do their absolute best to deliver what they proposed.
July 2nd, 2008 at 10:09 am
Ernest: Agree! What is the status of site 1 and 2? I do not understand why they feel they have to start/finish one project before sending out an RFP for another. This approach prolongs progress.
How do you get a message to city council and city manager, get the RFP’s out for all available land and get these empty pathetic lots developed.
Also, what about the land west of the convention center, where those garages and goodyear station are located. How long will we have to look at those eyesores?
July 2nd, 2008 at 10:10 am
Sorry: What is the status of Site 2 and 3?
July 2nd, 2008 at 3:23 pm
No status… That’s the problem. The city officials wanted to have the RFP out a long time ago, but I haven’t heard anything on these two sites. Once the new convention center and Charter Square are completed, these two lots will be available for redevelopment immediately. I am not sure they need us to remind them, but at the same time I don’t understand the reason for dragging our feet on this. If you want to let them know how you feel, the city’s website has all the email addresses.
West of the new convention center is a parcel that will be used for an amphitheater, and in the future will serve as an extension to the convention center. I will be unpleasantly surprised if this lot will not be split, offering an opportunity for an adjacent hotel, or a mixed-use project. Given the vision for a future high-rise development at the site where The Warehouse was - provided the new restaurant/club doesn’t become financially successful - I think this site will be prime for redevelopment in the nearest future.
There are two more city-owned lots that will be part of the South End revitalization: Site 5 (bounded by MLK Jr Blvd, Dawson St, South St and McDowell St) and Site 6 (NW corner of MLK Jr Blvd and Salisbury St). While I do not expect anything yet, I do want to see some mixed-use development, including a few mid-rise buildings to complement something taller. Something of truly urban nature. Doesn’t have to be tall buildings everywhere, but I would urge the city to aim for something that will bring more pedestrian activity.
July 11th, 2008 at 3:53 pm
Dana,
I don’t really feel that Empire was given preferential treatment, when you consider how they have dealt with Reynolds… who has been given I don’t know how many extensions. Reynolds originally talked about doing something as far back as 2001, when Janet Cowell was still on the City Council!
Anyway, I agree with Ernest, that we ought to give them more time… a few months seems reasonable. Consider also that issuing yet another RFP would take considerable time, and the RCC will be open shortly (we need rooms!). If Hatem can downsize, but still deliver a viable ($) hotel site plan by Nov, then we are in business. The N&O stated just this week that Hatem plans to split the site into 1/2 hotel and 1/2 office/condos (to come later). Good idea. Reynolds deadline is looming as well…
August 4th, 2008 at 12:20 pm
[...] terminate the city’s agreement with Empire Properties regarding “Site Four”. As reported earlier, the council denied Allen’s previous request to terminate the agreement, offering Empire an [...]