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Show RDA votes for 2nd phase of contract By PAUL CHALLIS News Editor BOUNTIFUL The Bountiftil Redevelopment Agency has voted unanimously to enter the second phase of a contract with Johansen-Thackeray Johansen-Thackeray and Co. on a proposed downtown shopping center. The decision to continue to explore ex-plore the feasibility of a six-anchor shopping complex in a three-block downtown area was reached after the RDA board left an executive session Monday and gave its support sup-port to the developers to go ahead with the plan. The board decided to move for-ward for-ward with the second "benchmark" for the next 90 days or until July 9. Under the agreement, agree-ment, both sides review progress at each benchmark, before deciding whether to proceed further with the project. "The board added to the agreement agree-ment that the developers must acquire ac-quire all property to be used in the project or have options to purchase by the July 9 date or the end of the second benchmark," Mayor Robert L in n ell said. He also indicated the board wants solid figures from the developers on possible tenants by that date. In Tuesday's Clipper it was erroneously er-roneously reported that the RDA put the issue on hold and then went into an executive session to discuss the acquisition of real property and made no decision. After the closed session the RDA reconvened and gave its approval to forge ahead with the 1 80,000 square foot project in downtown Bountiful. Another issue discussed at the meeting was the concern of the RDA over compensation. The original contract calls for no compensation com-pensation to Bountiful City for the property owned by the city that will be deeded to the developers. If the deed changes hands and the project fails, the RDA would lose the property prop-erty it now owns in downtown. Councilwomen Barbara Holt and Renee Coon both expressed concerns con-cerns for the lack of compensation for the city if the project fails or stalls. "I will not go through with this project if there is no compensation for the RDA," Coon said. Developer John Thackeray said he is still "optimistic and encouraged" en-couraged" about the feasibility of the project. F "The costs are too high and the revenues are too low. If we can lower the costs and increase the revenues and increase the density, the numbers will come closer together," Thackeray said. Bountiful City Manager Tom Hardy said, "There is a gap that needs to be bridged. If the gap can be bridged, then we'll talk about it. The developers have told us that it is possible to go onto the second benchmark." Linnell added, "We have all met the obligations to go onto the second se-cond benchmark. In the first benchmark ben-chmark it was found out that it was possible." The RDA remains optimistic that the multi-million dollar project will help rejuvenate the downtown area and has reinforced the option agreement signed in January with Joh an sen-Thackeray and Co. to find clients to make the center a reality. The option agreement calls for five segments or benchmarks during dur-ing an 1 8-month period. At the end of any of the benchmarks, either the RDA or the developers can terminate ter-minate the agreement. The developer is trying to obtain property between Center Street and 200 South and Main Street and 100 West to build the shopping center. One of the major obstacles to the project is persuading the existing property owners to sell at a price reasonable to the developers. "All of the property owners have indicated they are willing to sell," Hardy said, "But there's quite a gulf between market value and what the owners are asking. ' Hardy said a possible agreement in which the city gets some of the yearly profits of the development may allay the council members' fears over the city's lack of compensation. |
