Arkansas Blog: Donaghey deal nixed

The people who hoping to turn the Donaghey Building into condos and commercial space won't be buying the Metrocentre parking deck across Seventh Street from the Main Street landmark.

The city placed too many conditions on the $2 million sale, said developer Stephanie Smith. The deal was on the City Board agenda last night, but wasn't considered. City Manager Bruce Moore announced, however, that the city -- if it agreed to a sale of the deck -- would insist on an 18-month period for the developer to have all the necessary permits in place and a 24-month completion timetable after that, plus a guarantee that the bottom floor of the ~~deck~~ Donaghey Building would be used for commercial and retail.

Smith said these timetables might have been possible, but "you never know" about unexpected glitches. She said the restrictions could have complicated financing.

So now there's an alternative plan. Sharon Priest, director of the Downtown Partnership, which operates the deck for the Metrocentre Improvement District, proposed to lease the developers 180 spaces in the deck. Smith said her lender would accept that in lieu of parking deck ownership. She'll have to rework her financial plan, but says she intends to proceed and hopes to have the money in hand and construction underway by the end of November or December.

"I'm not giving up," Smith said.

City Attorney Tom Carpenter had raised questions about Metrocentre's sale of the deck because the city had some $500,000 invested and, contractually, could have claimed more in a sale. The deck has never operated profitably and Priest had hoped the sale could retired bond debt early and free improvement district tax money for other downtown improvements.

Comments

Please, someone explain this statement"guarantee that the bottom floor of the deck would remain used for commercial and retail". When I pass by all I see is cars.

Posted by: saywhat | October 18, 2006 06:53 PM

how can someone who can't have their trash haul off be able to build condos, something smells in the alley of the donaghey building besides the parking deck

Posted by: widget | October 18, 2006 10:11 PM

This development needs to happen. The city doesn't need to be stuck with a parking deck that hemorrhages money and the Donaghey sitting as an impairment to development on Main. The lease arrangement for the deck sounds reasonable, I hope the city can make it work.

The best part of this development is that it was going to provide affordable condos, something that a family of two young professionals could afford. It was adding an element downtown is missing in affordable condos and would provide a cornerstone for redevelopment on Main along with Lafayette Square.

Posted by: Aporkalypse | October 18, 2006 11:00 PM

It would be a great development if it was really real. I hope someone brings Ms Smith a tire to fix the trailier being use to haul off thier trash, OH- i get it now, instead of waste management, Donaghey trash trailier, looks like this a flat bed trailier, 3 plywood sides with the tire missing and trash building up. would you like them to build you a condo? what else 2003, 2004 property taxes wasn't paid till after 10/06/06 where they had to get a redemption deed. if they can't afford the property taxes on the donaghey building how can the afford a payent on the parking deck.
What else i think the contractor needs to look at the the clarification memorandum by ADEQ on asbestos removal, no more free ride. Hey attorney's what does donaghey building - asbestos- ADEQ- HUD - and using homeless have in commend.

Posted by: widget | October 19, 2006 03:33 AM

Arkansas Blog

Donaghey deal nixed

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