Carriage City settlement: Still talking

Redevelopment Agency commissioners went into executive session at their monthly meeting Wednesday night to discuss ongoing talks with Carriage City Properties (CCP) about a settlement agreement.

City Administrator and Redevelopment Director Peter Pelissier told commissioners he needed the board’s comments about a potential settlement agreement regarding Carriage City Plaza. City officials have had several meetings, in person and by phone, with CCP/Silcon representatives about a possible settlement, he said.

The Redevelopment Agency approved a settlement agreement in May 2009 after declaring CCP in default earlier that year but it has not been executed by the developer. The resolution that was approved allowed CCP to rent unsold units in the 16-story building.

Among the items included at the time the settlement agreement was approved last year:

  • CCP will execute a note and mortgage to secure the outstanding $2,285,250 in development fees and purchase price payments. The agency will get 10 percent of rent from each rented unit, which will be deducted from the $13,850 development fee until the unit is sold, at which time CCP will pay the balance. There are 165 remaining units.
  • Infrastructure improvements, namely the East Milton Avenue and Irving Street realignment, cost approximately $1 million, of which CCP was liable for $368,562. The agency accepted CCP’s offer of $150,000, to be released immediately.
  • Professional fees of $19,913 and water connection fees of $71,981 owed by CCP will be paid no later than April 1, 2010.
  • Construction permit violations totaling $168,000 will be waived upon abatement of all issues identified by the city’s construction official.