On October 15, the Standard-Examiner published this Scott Schwebke story, reporting, among other things, that the erstwhile Windsor Hotel Project developer, Ogden Properties LLC, had transmitted a letter to Ogden City officials, announcing the developer's abandonment of the project, and demanding that the city purchase the property and cough up additional monetary compensation.
In that connection, we're delighted to report that we've finally obtained a copy of that letter, a PDF version which we link here:
10/9/08 Ogden Properties Inc. demand letter
We'll be brief in our analysis; but we do want to make a couple of basic points.
Referring to the the original grant agreement between Ogden Properties and the Ogden RDA, we find this instructive language:
Paragraph 2: All improvements will comply with applicable Design Guidelines for the 25th Street Historic District, and other applicable rules, laws and ordinances (the "work").Substantially similar language is found in the Ogden Properties/Ogden City development agreement, at paragraphs I(C)(4), II(A), III(B)(1) and III(C)(3).
Paragraph 3(d): In the event Donee has not completed the Work and obtained a certificate of occupancy on or before April 30, 2009 then Donor shall have the right to purchase the Property from Donee for $332,000 plus verified expenditures for capital improvements by Donee on the Property after the disbursement of the Grant to Donee. [Emphasis added].
The developer devotes a significant amount of ink to lambasting the council for its refusal to bend the zoning rules for the developer's benefit, yet the developer knows that it agreed to abide by the rules in place at the time it entered into these contracts in the first place. Moreover, the governing documents merely provide Ogden City (and the Ogden RDA) a right to purchase the Windsor property under set terms in the event of a developer default. Significantly however, they do not impose upon these city entities the affirmative obligation to do so.
Maybe it's just us... but the developer's threat looks pretty "thin" to us.
And sorry folks. We haven't yet succeeded in obtaining the "separate document" referred to in the letter, in which Ogden Properties itemizes its "expenses" to date. Rumor has it however that the developer is putting the arm on the taxpayers for at least a cool $million.
So... what say our gentle readers about all this?
