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Show it : RDA OK's amendment to option agreement By PAUL CHALLIS News Editor BOUNTIFUL An addition to the option agreement between the city and Johansen-Thackeray and Co., that could make it more difficult to secure financing for the Block 29 project, has been approved approv-ed by the Bountiful Redevelopment Agency. The amendment calls for the developer de-veloper to secure a loan for 70 percent per-cent of the project in the construction construc-tion phase after 90 days of the closing. clos-ing. If at least 70 percent of the loan cannot be guaranteed, the property will return to the RDA. The board had delayed the decision for the new amendment for a week for more study on March 9. Councilwoman B arbara Holt, who spearheaded the push for the amendment to the original agreement, agree-ment, said it will stop the developer from "sitting on it" and prevent the project from being delayed or RDA losing the property if the project fails. The new addition also calls for the RDA to have the right to pre-approve pre-approve construction companies and other entities involved in the project to help secure the success of the new shopping center. The RDA board approved the new amendment to the optior i agreement by the vote of 5-1, with member Renee Coon opposing the measure. Mayor Robert Linnell is a voting member of the RDA board. City Manager Tom Hardy told the RDA officials that the amendt-ment amendt-ment calls for "reasonable restrictions restric-tions and measures and after reviewing it, I feel comfortable with it" Developer John Thackeray at a previous meeting said he was. against the new amendment He added that lenders would not approve ap-prove such an agreement, because the property would revert back to the RDA instead of the bank if the loan defaulted. "No lender would loan money under those circumstances," Thackeray said. "I understand the RDA would like to eliminate all risks, but this amendment would leave the lenders taking several undesirable risks. ' ' Johansen-Thackeray and Co. is near the end of the first 90 days of the first segment of the option agreement and is trying to buy the property along the downtown area for a six-anchor shopping center for Block 29 in Bountiful. The developer de-veloper is also trying to get firm commitments from possible clients for the 180,000 square foot project from 100 South between Main Street and 100 West |
