Lexington,KY - A redesigned 25-story CentrePointe hotel/condo/retail project proposed for downtown Lexington won the unanimous approval of the city's Courthouse Area Design Review Board (CADRB).
The design was scaled down in response to market feedback, according to attorney Darby Turner, who went before the board representing the Webb Companies and developer Dudley Webb to request that it reissue a city permit to build within the board's area of oversight. It was the fourth time the CentrePointe developers have gone before the board.
The new plan proposes reducing the height of the project from 497 feet to 287 feet - 23 stories devoted to occupation, the remaining two housing mechanical apparatus and other uninhabited space. The tower is a "stepped" form that becomes a slender tower.
As with the original plan, unveiled in 2008, the new design by CMMI Architects of Atlanta includes a J.W. Marriott Hotel with space for 237 hotel rooms. It accommodates 63 residential units. And there would be 50,000 square feet of office space which, according to Turner, is spoken for by a single prospective tenant.
The project, stalled when financial backing collapsed, still lacks financing. Turner told the CADRB, however, that he has met with two national banks and both are interested in the project, noting that "activity is beginning to pick up."
Opponents of CentrePointe appeared as well and asked that Webb be required to document that he has adequate financing for the project before the board approves the project.
Turner responded that the city does not legally require that a developer prove he has financing.
A letter from Marriott International,Inc. that was included with the developer's filing for re-issuance of their building permit confirmed the hotelier's continued commitment to working with the Webbs. The letter, signed by Thomas D. Papelian, stated, "understandably, challenges in the economy and throughout capital markets have caused project delays and have required certain programming modifications in regard to the scale of the project."
The hearing came as a survey by McGraw-Hill Construction, a unit of McGraw-Hill Cos, found 39 percent of U.S. construction companies say project financing has become harder to obtain. A majority said the current market continues to decline. The survey received response from some 2,000 contractors and engineers, nationwide.
And in an indication of a down market for luxury real estate such as that proposed for CentrePointe, FirstAmerican CoreLogic, a firm that tracks real estate and mortgages, says its data shows the percentage of $1 million-plus loans more than 90-days delinquent rose to 13.3 percent in February, half again as high as the 8.6 percent overall overdue rate.
The million-dollar delinquency rate has exceeded the overall past-due rate since April of 2008, according to the company.