City Manager Recommends Terminating "The Hillsborough"
As Ted and David Reynolds’
Quorum
project was in full swing, the focus of the public shifted toward their more promising project at 301 Hillsborough Street. The project took many iterations, and many different financing strategies.
On May 20 the City Council approved an extension of the Reynolds’ contract demanding proof of full financing by August 1. “To date, the City has not received such letter or an executed contract. Therefore, 301 Hillsborough Street Partners, LLC is considered to be in default on the existing contract.” Therefore, City Manager Russell Allen recommends immediate termination of the contract.
The City Council agenda also states: “In a recent meeting with Ted Reynolds, David Reynolds and Tom Worth, they advised that they have been assured their lender will commit financing for the project once ‘take down’ provisions have been secured for all three portions of the project upon construction completion; however, an additional investor is still required for the hotel portion of the project. All investors are expected to be in place and ready to move forward with the project in December 2008. A letter noting their intent is in the agenda packet.”
The City Council will discuss the contract in tomorrow’s 1pm meeting.
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September 1st, 2008 at 3:52 pm
Does the City Council ever care what Allen thinks anymore?
I really don’t understand how he still has a job.
September 1st, 2008 at 4:24 pm
Well…Allen IS enforcing these deadlines the City Council has set. I think he’s just doing his job here. The Reynolds have had, I believe, 4 extensions on this project.
What could be an interesting development is the recent suggestion by Councilman Crowder for the City to build a new office building at 301 instead of where the police HQ is. This way some nice living-oriented development could occur on a second side of Nash Square.
September 2nd, 2008 at 7:59 am
In other news:
City Recommends Terminating the City “Manager”…
September 2nd, 2008 at 8:58 am
I am all for The Hillsborough, and I support the Reynoldses in their vision, but this project has been discussed since 1999 and we are still nowhere near ground-breaking. Kind of hard to throw my support 100%. If the City Manager has other developers lined up, then I totally understand why he wants to terminate the current deal.
Also, Crowder’s idea to build the Clarence Lightner Public Safety Center (CLPSC) at the 301 Hillsborough site is definitely a great one, assuming the city does something good with the current RPD location. Keep in mind that the CLPSC will have LEED certification and as designed it will stand at least 18 stories tall. This means, it will be close to the 23-story Hillsborough, so the skyline will get an identical boost on that location. Then, the Reynoldses can participate on an RFP for the RPD site. I would not exclude them from such RFP.
September 2nd, 2008 at 11:47 am
Allen is just doing his job. Maybe he is the only one seeing the economy going down and therefore, marketing and convention money drying up and they need more hotel rooms downtown to draw bigger and more wealthy conventioners.
“Come to Raleigh downtown for your convention but 70% of you will have to stay out on the interstate and drive to everything.”
Does not work.
Not sure if anyone will take the place of this building with the lending crunch. Give Big Ted to December but then move on after that. Again, Allen is just doing his job.
September 2nd, 2008 at 3:07 pm
These are questions, not criticisms. How long does it take to get financing together? And with respect to our city’s delayed projects, did the previous financing fall apart for all of them at the same time? The Lafayette, Hillsborough, Soleil Center, … They all have had funding issues and they all say that they will have it resolved sometime late Fall/ early Winter. Are they blowing smoke or are they all seriously on the same timeline?
September 2nd, 2008 at 4:48 pm
The CLPSC at the 301 Hillsborough location is a HORRIBLE idea.
That section of Hillsborough is the connector between downtown and Glenwood South and needs to be developed accordingly, not with a public building.
You shouldn’t put the Police HQ and City Hall on a main destination path. Put it where it is now, off the beaten path and out of the sight of everyone.
Why put a building that produces no nightly foot traffic on one of the main streets where you’re trying to build a nightlife?
September 3rd, 2008 at 12:21 pm
Couldn’t agree more Chris, the fact that Allen is trying to dump this indicates he either has something else for the space (which would indicate he’s intelligent enough to push his ulterior motives) or that he’s really an idiot and is going to throw such a lucrative and worthwhile idea away over some contract issues.
September 4th, 2008 at 9:08 am
If Russell Allen knew something we didn’t he would have said something by now. I’m unimpressed and I think he’s behaving like a child. Banks are telling developers it’s coming, it’s getting better, next quarter, etc… but the rules keep changing. Resetting the clock will take a long time and and unless someone comes in putting up 45-50% equity into the project, most lenders (Private or Public) won’t touch it until the smoke clears.
September 9th, 2008 at 9:28 am
Chris’ observation on the CLPSC going to 301 Hillsborough has a lot of common sense in it, and I could easily agree. I am not 100% for this idea (CLPSC at 301 Hillsborough), but at the same time I don’t think it’s all bad, either. While CLPSC may not generate the activity we want to see here are some things to remember:
1) It is a 24/7 facility, which means people will go in and out around the clock. These people will have to eat, or get a coffee somewhere, thus encouraging new businesses and supporting existing ones nearby.
2) Given there are already some residential buildings in the area to surround CLPSC (Dawson, Hue, Quorum Center), and even Marriott Hotel, CLPSC going to the 301 Hillsborough site won’t hurt the fabric. Something will eventually go to the adjacent lot - 309 Hillsborough - which the Reynoldses plan to use for The Hillsborough. Let them build The Hillsborough on that lot, and make it taller.
3) The corner where Raleigh P.D. is currently located can become the catalyst for more mixed-use projects around Nash Square, especially along McDowell Street. Placing CLPSC there is not a bad idea, but doesn’t help us add mixed-use, especially residential projects. The view of Nash Square would be something worth paying for, more than any other residential tower we have to this day. Not to mention a project with a residential component would improve the connectivity with the CBD.
Again, I agree with Chris’ observation, but I do think there are pros and cons, no matter which approach we take. Certainly, it would save the city some money in the short run to use the 301 Hillsborough property, especially if the Reynoldses cannot deliver on their promise. One way or another, I will be happy to see CLPSC being built, at least as it is now.