HomeMy WebLinkAboutConstituent Letter - Mail Packet - 1/31/2013 (10)DATE:
January 31, 2013
TO:
Mayor & Councilmembers
FROM:
Darin Atteberry
RE:
FYI
/du
TWES U ALL X' 0
Twin Peaks Mall developer 'more than stressed'
over lack of progress with two key tenants
Council asked to use eminent domain as a 'last resort' action so project
doesn't completely implode
By Tony Klndelspire Longmont Times -Call
O1/30/13
LONGMONT -- Despite more than a year's worth of negotiations, NewMark Merrill
Mountain States has failed to come to terms with Dillard's and Regal Cinemas on an
agreement on the redevelopment of Twin Peaks Mall.
Allen Ginsberg, managing partner for the mall's owner, NewMark Merrill Mountain
States, appeared for a scheduled update on the progress of the mall's redevelopment and
expressed his frustration from being able to move forward on what is a very ambitious
timeline.
"Dillard's and Regal continue to obstruct and implement our immediate progress,"
Ginsberg told the city council, which has already given its approval to move forward on
being a financial partner in the mall's redevelopment. "A number of other tenants have
agreements that say 'You have to have the ability to build our store."'
Ginsborg asked the council, acting as the Longmont Urban Renewal Authority, to pass a
resolution that would give it the option of using eminent domain as a last resort if every
other effort to strike agreements with those two tenants fail, so as not to jeopardize the
total $80 million project.
In the case of Dillard's, it owns its own store and the land it sits on, and covenants dating
back to 1997 give it veto power over any redevelopment of the mall property. Multiple
discussions on and off for more than a year have failed to produce any kind of agreement,
Ginsborg said. He said he has expressed his company's wishes to have Dillard's stay, but
it has gone back and forth on its commitments and its demands. In meetings as recently
as the past few days Dillard's appears to want to keep operating its store in Longmont, he
said.
As for the movie theater, it has a "lease hold" that allows it to be the only cinema
operator on the property. It has already signed a letter of intent to be the operator on a
new project, and a deadline of this Friday to submit a draft lease agreement to NewMark
Merrill. A deadline of March 15 stands for a final lease to be signed between the
developer and Regal.
Not even a letter of intent exists with Dillard's, Ginsborg said.
City Council voted unanimously to have city staff bring back the language for an eminent
domain resolution it will look at at its next meeting, Feb. 5. While it would not take
action next week -- acting as LURA -- it will leave itself open to that option if the March
15 deadline is not met.
As for Dillard's, city manager Harold Dominguez said he would notify the company
about the action Tuesday night and would once again stress the importance of meeting a
deadline of mid -March.
Ginsborg told council that given the timeline his company is under, he must have all of
the financing in place for his project by April 1.
During a 21/2-hour council discussion, there was feeling on one side that a formal action
that even threatened the use of eminent domain would negatively impact negotiations
between the mall's owner and Dillard's and Regal. But the other side felt that, after more
than a year of negotiations with both of them, it might help those tenants get a little more
serious about striking a deal.
Describing himself as "more than stressed" with the April l deadline just more than two
months away, Ginsborg said, "The reality is I didn't want to come to you and ask you for
this until I felt I needed -it."
Tony Kindelspire can be reached at 303-684-5291 or at tindelspire@times-call.com.