metro
06-19-2008, 08:48 AM
Urban Renewal wants back land it sold to developer
Daily Oklahoman
By Steve Lackmeyer
Business Writer
A potentially complicated unraveling of a series of downtown land deals is about to begin as the Oklahoma City Urban Renewal Authority seeks to reclaim land it sold eight years ago to the original developer of the Deep Deuce Apartments.
A failed late effort to get Braum's to build a fresh market store at the corner of NE 3 and Walnut Avenue added to the disappointment of Urban Renewal commissioners Wednesday as they voted unanimously to revoke developer designation for Somerset Partners of New York. Their action calls for buying back the property at NE 3 and Walnut at an estimated $3.50 per square foot.
With similar property owners in the area now asking upwards of $40 a square foot, the question is whether Somerset Partners will let go of the property without a fight.
"We need more time, said Michael Laird, an attorney with Crowe & Dunlevy representing Somerset Partners. "My client very much wants to develop this. They're not sitting on their hands. They also understand they have nothing to show to you today.
Background to problem
Neither have they since October 2005, when Somerset's first deadline to develop the corner expired, said JoeVan Bullard, Urban Renewal director. Bullard reminded commissioners they gave "several extensions before warning Somerset in February the company would be declared in default of the redevelopment agreement within 90 days.
Laird said Somerset was first stymied in its plans by failed efforts to buy property in the middle of the block that is owned by the Opportunities Industrialization Center across the street. Laird said the OIC land sits between two parcels owned by Somerset. He said the OIC didn't respond to a $130,000 purchase offer last fall as Somerset attempted to consolidate the properties and do a deal with a daycare center.
Laird said Somerset then tried to negotiate a deal with Braum's to build a combined restaurant and fresh market at the corner a project long desired by downtown's growing residential community.
"It got to a point it stalled a bit, Laird said. "I contacted Drew Braum (Braum's president) directly, and I had several discussions with him, on the phone and face to face. To his credit, while he said it didn't really meet what he says is their market in terms of location, he said he would consider it. He and his sister even walked the site. He came back and said, I just don't think we're there yet.'
After an offer by Urban Renewal attorney Leslie Batchelor to pursue city assistance to make the store a reality, Laird said Braum agreed to resume talks. But two weeks ago, Laird said, Braum called back saying, "We just don't want to be the first ones there.
That explanation won no sympathy from commissioners, but drew some criticism from board member Russell Perry, former state secretary of commerce and president of Perry Publishing and Broadcasting Co.
"They (Braum's) have no presence in the northeast at all, Perry said. "That's a message as far as I'm concerned.
Terry Holden, marketing director at Braum's, dismissed such criticism when told of the discussion Wednesday afternoon.
"I happen to be sitting in our corporate offices on NE 63, Holden said. "We just don't break the city up that way.
Instead, Holden said, Braum's constantly is weighing whether to build a store in Oklahoma City or Cushing. He said Braum's is rarely the pioneer in any development.
"A lot of it comes down to only being able to do so much at one time, Holden said. "We're such an impulse business, there has to be a lot of drive-by traffic already in place.
Brett Hamm, president of Downtown Oklahoma City Inc., said he has no concern about finding a new developer for the corner. It became a prime piece of land when Walnut Avenue was transformed into the main corridor into Bricktown and Deep Deuce two years ago.
"We've been contacted by others extremely interested in that site, Hamm said. "It has tremendous potential ... it takes a forward thinking business mind to see it.
What comes next?
But first, Urban Renewal needs to reclaim ownership.
Laird on Wednesday declined to say whether the matter will end up in court.
Dan Batchelor, an attorney representing the Urban Renewal Authority for more than 40 years, could only recall one other instance when the agency sought to reverse not just a developer designation but a land sale, as well.
"It's very rare, Batchelor said. "We have so many approvals we go through before we turn loose a property. The greatest likelihood of it happening is when you transfer property, but you have a second phase that is mandatory, not optional.
How the land changed hands
The land at NE 3 and Walnut originally was sold by Urban Renewal to Texas-based First Worthing in 2000 for about $3.50 a square foot as part of a phased development of the Deep Deuce Apartments.
First Worthing developed what was then the largest influx of downtown housing at a cost of $15 million. It then sold the complex and the undeveloped phase II land in 2003 for $22 million, setting a record sale price of $75,170 per unit.
Somerset Partners of New York was able to develop another parcel of the second phase property at NE 4 and Central into the Central Avenue Villas. In 2007 Somerset sold the Deep Deuce Apartments, but not the undeveloped land, to Nebraska-based Haley Associates for $26.9 million
Urban Renewal wants back land it sold to developer | NewsOK.com (http://newsok.com/urban-renewal-wants-back-land-it-sold-to-developer/article/3259295/?tm=1213846462)
Daily Oklahoman
By Steve Lackmeyer
Business Writer
A potentially complicated unraveling of a series of downtown land deals is about to begin as the Oklahoma City Urban Renewal Authority seeks to reclaim land it sold eight years ago to the original developer of the Deep Deuce Apartments.
A failed late effort to get Braum's to build a fresh market store at the corner of NE 3 and Walnut Avenue added to the disappointment of Urban Renewal commissioners Wednesday as they voted unanimously to revoke developer designation for Somerset Partners of New York. Their action calls for buying back the property at NE 3 and Walnut at an estimated $3.50 per square foot.
With similar property owners in the area now asking upwards of $40 a square foot, the question is whether Somerset Partners will let go of the property without a fight.
"We need more time, said Michael Laird, an attorney with Crowe & Dunlevy representing Somerset Partners. "My client very much wants to develop this. They're not sitting on their hands. They also understand they have nothing to show to you today.
Background to problem
Neither have they since October 2005, when Somerset's first deadline to develop the corner expired, said JoeVan Bullard, Urban Renewal director. Bullard reminded commissioners they gave "several extensions before warning Somerset in February the company would be declared in default of the redevelopment agreement within 90 days.
Laird said Somerset was first stymied in its plans by failed efforts to buy property in the middle of the block that is owned by the Opportunities Industrialization Center across the street. Laird said the OIC land sits between two parcels owned by Somerset. He said the OIC didn't respond to a $130,000 purchase offer last fall as Somerset attempted to consolidate the properties and do a deal with a daycare center.
Laird said Somerset then tried to negotiate a deal with Braum's to build a combined restaurant and fresh market at the corner a project long desired by downtown's growing residential community.
"It got to a point it stalled a bit, Laird said. "I contacted Drew Braum (Braum's president) directly, and I had several discussions with him, on the phone and face to face. To his credit, while he said it didn't really meet what he says is their market in terms of location, he said he would consider it. He and his sister even walked the site. He came back and said, I just don't think we're there yet.'
After an offer by Urban Renewal attorney Leslie Batchelor to pursue city assistance to make the store a reality, Laird said Braum agreed to resume talks. But two weeks ago, Laird said, Braum called back saying, "We just don't want to be the first ones there.
That explanation won no sympathy from commissioners, but drew some criticism from board member Russell Perry, former state secretary of commerce and president of Perry Publishing and Broadcasting Co.
"They (Braum's) have no presence in the northeast at all, Perry said. "That's a message as far as I'm concerned.
Terry Holden, marketing director at Braum's, dismissed such criticism when told of the discussion Wednesday afternoon.
"I happen to be sitting in our corporate offices on NE 63, Holden said. "We just don't break the city up that way.
Instead, Holden said, Braum's constantly is weighing whether to build a store in Oklahoma City or Cushing. He said Braum's is rarely the pioneer in any development.
"A lot of it comes down to only being able to do so much at one time, Holden said. "We're such an impulse business, there has to be a lot of drive-by traffic already in place.
Brett Hamm, president of Downtown Oklahoma City Inc., said he has no concern about finding a new developer for the corner. It became a prime piece of land when Walnut Avenue was transformed into the main corridor into Bricktown and Deep Deuce two years ago.
"We've been contacted by others extremely interested in that site, Hamm said. "It has tremendous potential ... it takes a forward thinking business mind to see it.
What comes next?
But first, Urban Renewal needs to reclaim ownership.
Laird on Wednesday declined to say whether the matter will end up in court.
Dan Batchelor, an attorney representing the Urban Renewal Authority for more than 40 years, could only recall one other instance when the agency sought to reverse not just a developer designation but a land sale, as well.
"It's very rare, Batchelor said. "We have so many approvals we go through before we turn loose a property. The greatest likelihood of it happening is when you transfer property, but you have a second phase that is mandatory, not optional.
How the land changed hands
The land at NE 3 and Walnut originally was sold by Urban Renewal to Texas-based First Worthing in 2000 for about $3.50 a square foot as part of a phased development of the Deep Deuce Apartments.
First Worthing developed what was then the largest influx of downtown housing at a cost of $15 million. It then sold the complex and the undeveloped phase II land in 2003 for $22 million, setting a record sale price of $75,170 per unit.
Somerset Partners of New York was able to develop another parcel of the second phase property at NE 4 and Central into the Central Avenue Villas. In 2007 Somerset sold the Deep Deuce Apartments, but not the undeveloped land, to Nebraska-based Haley Associates for $26.9 million
Urban Renewal wants back land it sold to developer | NewsOK.com (http://newsok.com/urban-renewal-wants-back-land-it-sold-to-developer/article/3259295/?tm=1213846462)