The chess match continues as City Manager Russell Allen has asked the city council to immediately 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 extension until November 1 to show earnest progress and to provide partial funding for street improvements. According to the agenda for tomorrow’s 1:00pm meeting:

On June 17, 2008, Council approved to an extension of the Development Agreement with Empire Properties for the development of the Lafayette (a mixed use facility) on the City-owned Site 4 at the intersection of Salisbury and Lenoir Streets. The Council granted an extension to November 1, 2008, with the requirement that Empire Properties share the cost of widening a portion of Salisbury Street between Lenior and South (approximately $50,000) at the completion of construction and further agree this would be the last request for extension. Empire Properties is unwilling to sign the extension agreement with these terms.

From the cheap seats, it appears that Empire is likely balking at spending $50,000 on street improvements for a project that is still uncertain. If Empire properties were to miss the November 1 deadline and lose the rights to develop Site 4, would Empire be reimbursed these funds by the city? How about by the eventual developer?

During the July 1 city council meeting, Allen noted that other developers have informally inquired about the site, but wouldn’t elaborate. Perhaps there is more to this, but the heart of this recommendation is most likely a legal squabble regarding a safety net for a developer who has his heart on getting his feet wet with new, inspiring development. Fifty grand is a lot of money to lend the city. On the other hand, without these street improvements and a progressing development, visitors to the new convention center are likely to be greeted by a weedy, surface lot for months to come.