Former Police HQ Development

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Re: Former Police HQ Development

elevatoroperator
It's not really an issue of funding on the city's part, per se. As I understand it, the city put out a bid to developers to come up with proposals for the site. Each developer's proposal includes an offer to buy the land from the city for a certain amount. The offers made by both developers in their proposals was lower than what the city feels the land is worth.

Time may or may not reduce development costs -- cost escalation right now is insane due to supply chain and labor issues; this is a problem on every single project I'm working on right now. But the other variable is that a developer could come along with a more ambitious proposal, i.e. they could propose something denser that involves more potential profit from the development, which would allow them to offer the city more money for the land. Personally, I think this is unlikely, as both proposals were already pretty ambitious with density. It really does seem like the city is shooting itself in the foot here, as it's really likely that these developers won't go after the project a third time. Going after a project like this involves a ton of time and money.
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Re: Former Police HQ Development

bulletfedora
Completely agree. Just watched to the session. They seem frustrated but seemed unwilling to adjust their priorities. I understand the desire to get it right but it is not surprising to me, given current uncertainties, that the bids were lower than they wanted. Clearly they need to either want less commercial, less preservation or less affordable housing to get a better bid but there was little discussion (outside of less preservation) in terms of actual comprises. So unclear to me whether taking more time will actually make things better. hope so!
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Re: Former Police HQ Development

Durham_Transplant
Agree with what you all are saying. I think this is the nail in the coffin for the old building honestly. It’s clear that the investment to renovate it is significant and it’s only going to continue to deteriorate while this process plays out again.

They blamed the reduced financial return on “market uncertainty” which I don’t understand or agree with. These two groups both stepped up and delivered sizable projects that broadly met every other criteria including significant commercial space.

Hindsight obviously 20/20 but they really should have pushed to figure out a deal with Fallon the first time around. Likely the only way they are able to get a higher offer at this point is to allow a developer to scrap the Small building and I suspect that would be replaced with even more luxury high rise residential which is clearly not going to be in short supply downtown.
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Re: Former Police HQ Development

Durham_Transplant
Man looked back at a few older posts in this thread and the original project that Fallon proposed could be under construction right now. So disappointing. Okay rant over.
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Re: Former Police HQ Development

bulletfedora
Yep.  The other frustrating thing is the council talked a lot about this specific space, but IMO they are dramatically undervaluing/underestimating how a project like this would affect development adjacent to these properties. The area adjacent to the co-op is ripe for more housing as well but I suspect that is years off now as well
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