After years of contentious debate on the excavated downtown block of CentrePointe, city officials announced in August that a new development team has signed onto the project.
Under the new plan, Bridgeton Holdings, a real estate development firm based in New York City, will invest millions in equity and handle all management and operations of the project. CentrePointe, LLC, operated by the project’s original developer the Webb Companies, will maintain a “small passive ownership” of the development, according to information released by the city.
The investment required to finish the project is estimated at $166 million, city officials said.
Buildings on the block were demolished to make way for the Centrepointe project in 2008. The project underwent numerous design changes before excavation began on the site in December 2013. Further delays in the project led some planned tenants to pull out, including Jeff Ruby’s Steakhouse and engineering firm Stantec.
In April, city officials sent notice to the project’s developers that the excavated site would need to be filled in, citing an agreement between the city and the developers that called for the location to be restored to its pre-existing condition if no work was done on the site for 60 consecutive days.
Lexington Mayor Jim Gray heralded the addition of the new development team on the project, but with an added note of caution.
“It’s a positive development that I hope leads to good jobs and a project that will have an economic impact beyond its physical borders, for the entire city,” Gray said in a statement. “We don’t want to be overly optimistic because there’s a lot of work to be done to pull this together, but what we do know is that this development team brings real cash and enormous experience to the table. That’s a big deal.”
Calls and emails sent to Bridgeton Holdings have not been returned. Developer Dudley Webb declined comment, citing confidentiality agreements that prevent him from doing so.
The city said Bridgeton’s plans for the project remain the same: producing a mixed-used development in the heart of downtown. The new developers have also expressed to the city an interest in bringing Lexington’s government center in as a major tenant on the project.
“While the developer may want the city to move city hall, there has been no commitment to do that and there will not be any commitment to do that or anything else on that property unless it’s in the best interest of the taxpayers,” said Mayor Jim Gray. “Taxpayers have options and this city has and will consider every possible alternative.”
The development team was working to meet with city leaders in the public and private sector to gauge interest in the project, the city said. A construction schedule is expected to be announced at a later date.
“We expect and hope there is more than one option for developing the project,” said Mason Miller, an attorney working for the city. “At this point, the only issue under discussion is if and under what conditions the city will consider delaying implementation of the Conditional Restoration Agreement, and that has yet to be decided. Assuming that occurs, the next step will be discussion and negotiation concerning any specific proposals.”