These comments were posted on another media platform and reposted here with permission from Simon Hughes.
Village Center – Summary 5/12/21 – Simon Hughes
The developer, Collaborate, lost its “top-tier financing” (the investors providing the cash to purchase the land from the City). Consequently, Collaborate is unable to pay the City $8.2mm up front to purchase the land, as originally planned.
In a conversation on Wednesday the 12th, Bobby Warren confirmed that Collaborate lost its “top-tier financing” in late 2019 because of concern over the potential condemnation rights that might exist due to high speed rail. At that point, the City was aware that Collaborate did not have the financial ability to pay $8.2mm to close on all the land. Nevertheless, the City allowed Collaborate to pursue “co-developers”, with the hope that collectively, they would be able to purchase the land.
Collaborate now seeks to purchase the land from the City in much smaller parcels, beginning with land needed for: (1) Wellness/Medical Office Building, (2) office building, and (3) retail center. These transactions are supposed to close, and construction should begin, in July and August.
Per Warren, the City is considering selling the smaller parcels to the co-developers as each executes an agreement with Collaborate. (It’s unclear whether it would be a direct sale or whether it would be sold through Collaborate.) When asked, Warren said the Wellness/MOB/Office Group have contracts with Collaborate, and New Quest has a Letter of Intent. Warren did not know how each of the parcels would be valued for sale, but said the City would recover “about the same amount it paid” for the land.
The City has not executed a construction contract to build City Hall. The cost to build City Hall, as designed, will likely exceed $10mm, due to escalating construction costs.
Some residents oppose moving City Hall to Village Center: Others support it.
The Petition to keep City Hall in its current location was rejected by the City Secretary / City Attorney, stating it did not meet the requirements because it did not state it was an “Initiative Petition” and it did not specify/attach a proposed ordinance.