Developers of a planned $ 17 million luxury condominium project at Renaissance Park have pulled the plug on the development, citing poor sales.
In a letter to Spartanburg City Manager Mark Scott, Park View at Renaissance Development Group asked the city to terminate the agreement and refund the $ 25,000 deposit paid by the group.
Andy Gayle, the project manager, said a lack of development on the Renaissance Park site, including a yet-to-be-built golf course and promenade road, caused the project to be delayed.
While Gayle said 13 contracts had been signed for the two-acre, 65-unit development, another 21 people were on the verge of signing but wouldn't because of the development's lack of activity.
"The delay in development of Renaissance Park has caused us to pull out for now. They wanted to see Renaissance Park completed," Gayle said.
"It's disappointing for us, but I think it's disappointing for Spartanburg."
The two sides agreed in September that at least 24 units needed to be sold by March in order to move forward with the project.
Developers told city council in March the project had 12 committed buyers and another six units were on hold.
Gayle requested a 90-day extension, which was approved by city council.
The mid-rise condominiums would have featured two- and three-bedroom units overlooking a golf course and cultural center. Each unit would have sold for about $ 200,000.
Developer Tom Lounds said in April space needs for other projects sidetracked completion of the golf course. Planners are trying to accommodate a company building its headquarters in the park, design a parking garage and work out kinks in a planned cultural center.
Jennifer Evins, cultural facilities planning chairwoman for the Arts Partnership of Greater Spartanburg, expressed disappointment that the condo deal fell through.
"I just feel sad. To have upscale housing in our community is critical and timing is important," Evins said.
"We hope there will be other efforts. I'm sorry this one didn't work. Once the cultural center is built, no doubt things like this will happen."
More than $ 35 million has been raised to build the proposed cultural center. Another $ 13 million is necessary for the project, which is expected to house all the arts partners, the science center and a history museum.
The Arts Partnership is now waiting for the city officials to design a new plan for the Renaissance Park area because the original site for the cultural center, off St. John Street near Barnet Park, did not allow for expansion and parking.
"We are very much committed to being in Renaissance, we just have to have the right site to meet our needs," Evins said, adding that 5 to 7 acres are needed for the center's construction.
Spartanburg Mayor Bill Barnet said he was sorry that the project did not work out, but he believes the effort to bring additional residential space to the central business district would continue.
"I am very appreciative of the efforts and energy of this group of thoughtful citizens who invested their time and resources to move our community forward," Barnet said.
The project had been a joint venture between the city and developers.
The city agreed to purchase an option it held on a .91 parcel from Renaissance Park Developer Arthur Cleveland for $ 236,000.
The purchase increased the size of space for the project to slightly over two acres.
City officials said expenses would have been recouped through proceeds from the land sale, infrastructure funding and projected property tax collections.
City officials estimated the development would have resulted in $ 185,000 in tax revenue beginning in 2006.
Councilwoman Linda Dogan, who represents the area surrounding Renaissance Park, said the condominiums were too expensive for Spartanburg.
"I'm not surprised it failed," Dogan said. "I had great concerns about the amount the condos were selling for. It's a great place for homes, but it should be something people can afford."
Source: Herald-Journal