Chief
07-30-2008, 07:35 AM
http://columbian.com/business/businessNews/2008/07/07302008_Pressure-mounts-on-Vancouvercenter-developer.cfm
Wednesday, July 30, 2008
By JEFFREY MIZE, Columbian staff writer
Developers of the biggest building project in downtown Vancouver in the past 10 years need to break ground on their fourth building by the middle of 2009 to avoid an $800,000 penalty.
Three of four buildings at the Vancouvercenter complex east of Esther Short Park were finished several years ago, but a squishy market repeatedly has delayed construction of an eight- or nine-story office tower on the northwest corner of Sixth and Washington streets.
Vandevco, under terms of its development agreement with the city, must have the final building completed no later than June 30, 2010. If that doesn’t happen, Vandevco would have to pay $800,000 to Vancouver to avoid defaulting on its agreement.
Nawzad Othman, Vandevco’s managing director on the Vancouvercenter project, said his company will begin construction as soon as it secures tenants for the south tower, which would have ground floor retail and offices on the other floors.
“Right now, without strong tenants, preleasing, you can’t get financing anywhere,” Othman said. “We have a couple of very strong prospects on that building. If they materialize, we may even begin construction this year.”
Othman is also president of Otak Inc., a Lake Oswego, Ore., architectural and engineering firm. The company also maintains an office at Vancouvercenter.
The city council approved the development agreement in 1999 that included selling land once used by the Lucky Lager brewery at a bargain price. The city also agreed to purchase an underground parking garage from the developer and operate it for at least 15 years.
The council subsequently approved four amendments to the 1999 deal. The latest, enacted in July 2006, specified a June 30, 2010, completion date for the project’s final structure.
Eric Holmes, Vancouver economic development director, said the $800,000 penalty is intended to offset the loss of tax revenues from the fourth tower.
“The city would much rather see it built,” he added.
Othman said his company could have the project built in as little as 12 months, which means it would need to have construction under way by next summer to avoid the penalty.
“That will never happen,” he said about the $800,000. “We will get this thing going.”
Vancouvercenter currently consists of two six-story condominium buildings and one 11-story office tower with condos on the top floors.
The north tower is more than 80 percent leased, Othman said.
“By now it should be 100 percent,” he said. “And I think that reflects what’s going on in the economy.”
**SCHNIPP**
yah. Let's build even more vacant buildings in the downtown core...
cewl
Wednesday, July 30, 2008
By JEFFREY MIZE, Columbian staff writer
Developers of the biggest building project in downtown Vancouver in the past 10 years need to break ground on their fourth building by the middle of 2009 to avoid an $800,000 penalty.
Three of four buildings at the Vancouvercenter complex east of Esther Short Park were finished several years ago, but a squishy market repeatedly has delayed construction of an eight- or nine-story office tower on the northwest corner of Sixth and Washington streets.
Vandevco, under terms of its development agreement with the city, must have the final building completed no later than June 30, 2010. If that doesn’t happen, Vandevco would have to pay $800,000 to Vancouver to avoid defaulting on its agreement.
Nawzad Othman, Vandevco’s managing director on the Vancouvercenter project, said his company will begin construction as soon as it secures tenants for the south tower, which would have ground floor retail and offices on the other floors.
“Right now, without strong tenants, preleasing, you can’t get financing anywhere,” Othman said. “We have a couple of very strong prospects on that building. If they materialize, we may even begin construction this year.”
Othman is also president of Otak Inc., a Lake Oswego, Ore., architectural and engineering firm. The company also maintains an office at Vancouvercenter.
The city council approved the development agreement in 1999 that included selling land once used by the Lucky Lager brewery at a bargain price. The city also agreed to purchase an underground parking garage from the developer and operate it for at least 15 years.
The council subsequently approved four amendments to the 1999 deal. The latest, enacted in July 2006, specified a June 30, 2010, completion date for the project’s final structure.
Eric Holmes, Vancouver economic development director, said the $800,000 penalty is intended to offset the loss of tax revenues from the fourth tower.
“The city would much rather see it built,” he added.
Othman said his company could have the project built in as little as 12 months, which means it would need to have construction under way by next summer to avoid the penalty.
“That will never happen,” he said about the $800,000. “We will get this thing going.”
Vancouvercenter currently consists of two six-story condominium buildings and one 11-story office tower with condos on the top floors.
The north tower is more than 80 percent leased, Othman said.
“By now it should be 100 percent,” he said. “And I think that reflects what’s going on in the economy.”
**SCHNIPP**
yah. Let's build even more vacant buildings in the downtown core...
cewl