120th Avenue Development Woes

The following letter was sent to the Sentinel on August 12,2007.

If you think the development of the City-owned property at 120th Avenue and Grant is going well, I have some disturbing news.  The so called “investment” of ten million dollars in tax payers’ money is in jeopardy.  Let’s begin with the information given to the City Council at the meeting of July 26th by City Staff.
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“As the Council knows, in May the City entered into a development agreement with our development partners Zing and Prime West.”  After describing the City’s current activities in the area, the following statement was made.  “Our development partners, Zing and Prime West, are currently interviewing brokers that would eventually get a listing on the site and actively go out and solicit tenants.”
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Not one  party to the agreement has signed as of this week except for the Mayor.  That includes NURA and the development partners, Zing and Prime West.
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Why hasn’t it been signed?  Upon signing, Zing and Prime West will be in over their heads. They will be required to deposit $50,000 as Ernest Money and a dreaded clock begins to tick. 
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Per the unsigned agreement, within six months Zing and Prime West must purchase and close on eleven acres of property.  At the seven dollar price, the city will still be absorbing a large loss on its “investment.”
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There are other reasons that Zing and Prime West have not signed the agreement.  According to the agreement they are to build the project; not find some brokers who, in turn, will solicit tenants.  There are many more details on my web site.  Do a search for “genewieneke” and you will find them.
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Even though the agreement is nonexistent, the Council should realize that the clock has been ticking on them since they foolishly purchased the land and buildings beginning in 2004.  The decision has cost us over ten million dollars in capital improvements and services.  And that does not include the hundreds of thousands spent reconstructing Grant Street.  The fact that they are willing to sell even the prime portion of the land for a loss speaks for itself.
 

 

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