The jobs-creation acreage at OLF-8 and the residential mixed use portion should not be handcuffed together--- when we are good to go on the 250 acre jobs portion of this property. |
We have now had three separate offers for OLF-8 where one of the first sales stipulations/conditions for such sales requires significant variances away from the approved Master Plan for OLF-8 in Beulah.
Three companies, three separate and distinct offers, three LOI's with strict requirements for variances away from our codes and ordinances as it pertains to deveolping OLF-8.
This means something. Occam's razor applies. Obviously there is something with the master plan which is making such a transaction not financially viable.
I lament this, but I am not entirely surprised. In multiple discussions now with multiple industry professionals that have either already made offers for this field or who are considering doing so--the one common theme is that the plan as required is not financially viable/feasible in this market if strict adhearance in mandated.
Said one such offerer "We can get about 70% there, with the areas and the uses and even the street layouts--we just cannot make the other 30% and in order for this deal to make business sense for us as a company--we have to have relief from that 30% which includes some of the very proscriptive design code."
There is obviously some wisdom in this individual's words--- as each of these three separate offers are from primarily residential builders and each such plan--thus far--looks to build more single family housing than mixed use, commercial, and/or high density commercial with residential lofts.
So if we are going to only settle for absolute 100% compliance with the DPZ plan for the southern, mixed use portions of the field--- I believe we need to go ahead and start off with moving the 250 acres on the northern part of the field forward for job creation with a re-booted triumph grant. The board has signalled it's intent to hold back 250 acres for job creation--separate and apart from the rest of the field--due to the curveball we were thrown with the state's recently enacted "Live Local Act" which pre-empts our ability to prevent owners of commercial properties anywhere from immediately creating high-density residential apartments on such commercial properties. If we sold the northern portion of OLF 8 as a part of any one-package all in one sale---we would not be able to prevent such a purchaser from building apartments on that commercial jobs producing parcel thanks to the state's passage of this law. Our local control on this matter has been stripped by the state legislature.
So, with all of this as the backdrop, now is the time to move forward with creating jobs on the 250 acres of commercially zoned areas on the north east portion of OLF 8. I discussed this on Rick's Podcast Thursday Morning. If the board wants to create jobs with this portion, which we signalled strongly at our last meeting, now is the time to move forward, reboot our triumph gulf coast application, and get going. There are companies that need this space at this location--good companies with good jobs.
Meanwhile, we can wait for the perfect "unicorn" offer from a developer to build the balance of the field on the south side, in complete/absolute 100% adhearance to the master plan as enacted. We can make that portion fabulous. Eventually. If we get a buyer. Maybe.
But that might just mean we never get that section developed. It might mean we never get a restaurant, shop, or any other amenity developed on that portion of the field if the requirments are absolutely rigid and the county in intransigent with respect to ANY variances requested by an offeror. My prediction is we may never get an offereor who will pay top dollar to build it 100% as the plan specifies. Look back at the first three offers for my rationale for this prediction.
So the southern portion of the field might very well remain a field if that is the case. I know many would be just fine with that--because such individuals really never wanted anything built there anyway.
But the largest tragedy of that scenario is that it makes it harder, if not next to impossible, for us to ever recoup the county taxpayers' existing $14.5 Million debt on the whole parcel if the southern, most valuable retail/commercial frontage parcels on 9-Mile road remain "unsaleable."
But at this point the jobs portion and the residential mixed use portion should not be handcuffed together when we are good to go on the jobs portion. Time to get moving.