Strathmore has turned out to be completely shameless, it seems. It's not just that he can't get it done, which can be excused given the economy, but that he either doesn't seem to be making enough money, or is too greedy, to pay his taxes for the existing structures, on time. Perhaps, next time he bites off of something, it won't be more than he can chew. This is the kind of crap you're supposed to plan for, you know, like having enough money to at least keep the tax payments up if the economy sours. Personally, given that this is what, half-a-dozen extensions, now, and that he's late on the taxes, I'd advice them to let him go. But, the city doesn't have the guts to cut him off.
If you can't even start construction on one of these buildings ( or hell, even the townhomes) in the years he had to do this, you don't deserve to be in charge of this project and allowed to continue to squat aimlessly on the project.
That's the issue here - while the developer flails around dealing with all the other messes he's created, a whole block sits rotting away. And it's not as if this is some out-of-the-way property that no one sees. This is really the centerpiece of downtown. A straight up shame.
You know, what I don't get is why he didn't begin tearing down, say, the Citizens Bank Building on the corner, right away, since it'd be vacated for quite some time. It's not as if he had to kick any tenants out of anywhere, recently. Most had already left. Instead, he left everything up and has had to pay taxes on what he otherwise wouldn't have had to pay taxes on. I'm just wondering if he been that broke over the past few years that he couldn't even afford to tear these things down and at least start on the townhomes are smaller buildings?
You know, I have a lot of sympathy for those that genuinely try these type of projects in this kind of city in this kind of state, and fail. However, I don't have any sympathy for those that buy up property with no real or genuine intention to do what they say, and then have the gall to beg and whine when a municipality finally says "enough." I wish Strathmore no ill will, but they apparently did this same routine with their development plans in Lowertown in Ann Arbor, and I'm beginning to wonder if this isn't their MO? You can only use Michigan poor economy so far. Michigan has been in recession or near recession for what? 25-30 years now? You can only take that excuse so far. As the old saying goes, you eventually have to piss or get off of the pot...
I know I'm tough, but there is a reason for it. I'm tired of seeing Lansing-area developers make these amateurish mistakes. It reflects badly on the region, and makes potential regional or national investors skitish. When they see this bush league, small pond mentality in terms of development, they are less likely to take part in the redevelopment of the region, case in point someone like Grooters pulling out of Capitol Club.
Given Grooters recent problems with RiverHouse in GR (inability to close deals, filing lots of lawsuits against individuals who hadn't closed on units they signed agreements for, etc.), I'm not sure how much benefit having them involved in Capitol Club Tower would be. Certainly they have experience in high-rise living, but our local guys have been the heart and soul of the project. An outside partner with Grooters' expertise can be replaced.
On a different topic, I don't want to be caught defending Strathmore, and I have no idea if it's the case in this situation, but in some development projects, if there's an existing building that holds some value on a site, a mortgage holder will not let it be torn down until there's proof a deal can move forward. So it's possible some of the buildings, including the old Citizens building, are collateral on the loans that bought the site. He might be prevented from knocking them down from either/or both A) the cost of demo (especially if there's asbestos or other contaminants) and bank restrictions. That doesn't excuse letting the area start to look like crap though.
Your second point is definitely a fair one to be considered. So, thanks for offering that possible scenario.
As for the first point, for whatever their problems with River House, they are still a major outside investor, and losing their expertise and backing really puts into limbo the viability Capitol Club. I suspect they are only able to keep the project and its office open because of the parking garage they bought gifted from the city.
More news...it would seem that not paying taxes on his potential developments seems to be a feature, not a bug:
Out among a patchwork of farms along Columbia Road between Mason and Aurelius Township is a sprawling subdivision called Columbia Lakes, named for the small body of water it surrounds.
The few homes that have been built abut large tracts of open land. Planned streets dead end after a few feet and weeds poke up through the snow in empty lots. One plot, overlooking the lake, has just a foundation and looks like construction was halted long ago — there’s a sapling, maybe 10 feet tall, growing out of the foundation. “No trespassing” signs hang on a fence cordoning the foundation, and in front is a Strathmore Development Co. sign advertising that it’s for sale.
According to the Columbia Lakes Web site, 509 homes are supposed to encircle the lake. But it’s doubtful that more than 50 homes have been built in Columbia Lakes.
And now, the developer behind Columbia Lakes, East Lansing-based Strathmore Development Co., owes Ingham County $129,206 in delinquent taxes and late fees for 157 parcels in the development that have gone unpaid since 2007. Strathmore President Scott Chappelle says the taxes will be paid before March, the last month before the county could foreclose on the properties.
Chappelle, whose troubles with property taxes surround his planned City Center II development in East Lansing, would not comment on why the taxes went unpaid for so long. But his late taxes are only the fifth-largest amount owed in the county.
I mean, you'd think the EL City Council would be aware of Strathmore's other delinquencies. However, it certainly doesn't seem to be phasing them when it comes to giving the developer all the time they could possibly need to make sure City Center II still happens.
I know it's really unlikely to happen, but I just wish Gillespie, or some other developer, would swoop in and show interest in developing this land themselves.
Comments
If you can't even start construction on one of these buildings ( or hell, even the townhomes) in the years he had to do this, you don't deserve to be in charge of this project and allowed to continue to squat aimlessly on the project.
I've begun to wonder what kind of quality this project will be when/if it ever gets done.
You know, I have a lot of sympathy for those that genuinely try these type of projects in this kind of city in this kind of state, and fail. However, I don't have any sympathy for those that buy up property with no real or genuine intention to do what they say, and then have the gall to beg and whine when a municipality finally says "enough." I wish Strathmore no ill will, but they apparently did this same routine with their development plans in Lowertown in Ann Arbor, and I'm beginning to wonder if this isn't their MO? You can only use Michigan poor economy so far. Michigan has been in recession or near recession for what? 25-30 years now? You can only take that excuse so far. As the old saying goes, you eventually have to piss or get off of the pot...
I know I'm tough, but there is a reason for it. I'm tired of seeing Lansing-area developers make these amateurish mistakes. It reflects badly on the region, and makes potential regional or national investors skitish. When they see this bush league, small pond mentality in terms of development, they are less likely to take part in the redevelopment of the region, case in point someone like Grooters pulling out of Capitol Club.
Given Grooters recent problems with RiverHouse in GR (inability to close deals, filing lots of lawsuits against individuals who hadn't closed on units they signed agreements for, etc.), I'm not sure how much benefit having them involved in Capitol Club Tower would be. Certainly they have experience in high-rise living, but our local guys have been the heart and soul of the project. An outside partner with Grooters' expertise can be replaced.
On a different topic, I don't want to be caught defending Strathmore, and I have no idea if it's the case in this situation, but in some development projects, if there's an existing building that holds some value on a site, a mortgage holder will not let it be torn down until there's proof a deal can move forward. So it's possible some of the buildings, including the old Citizens building, are collateral on the loans that bought the site. He might be prevented from knocking them down from either/or both A) the cost of demo (especially if there's asbestos or other contaminants) and
As for the first point, for whatever their problems with River House, they are still a major outside investor, and losing their expertise and backing really puts into limbo the viability Capitol Club. I suspect they are only able to keep the project and its office open because of the parking garage they bought gifted from the city.
I know it's really unlikely to happen, but I just wish Gillespie, or some other developer, would swoop in and show interest in developing this land themselves.
http://www.lansingstatejournal.com/article/20100126/NEWS01/301260006