BURLINGTON — The developer behind the stalled CityPlace Burlington has met the first round of Mayor Miro Weinberger’s demands as the city steps up pressure on the company.
Aanen Olsen, the vice president for mixed use development at Brookfield Properties, sent a letter to Weinberger Monday evening informing him that the company had made $192,000 in payments.
On Sept. 27 Weinberger sent a letter to Brookfield demanding the payment for administrative delays, an electric department initiative and a holiday parking promotion, by Monday. Brookfield had previously promised to make the payments but hadn’t cut a check.
The site of the $220 million, 14-story proposed mixed-use development has sat vacant for over a year as financing and feasibility issues have stalled construction. While Brookfield announced a redesign in July, the company has not provided any information about design changes.
Construction activity is not expected this year. It could be four to 10 years before the downtown project is completed.
Weinberger said Monday night he was glad that Brookfield had taken action following the demand letter.
“I’m glad they took the steps, glad they performed,” Weinberger said. “It’s a step restoring some confidence in the project.”
The city is set to spend $22 million in tax increment financing for public improvements around the development site, most prominently to reconnect Pine and St. Paul streets.
In his Sept. 27 letter, Weinberger stated that Brookfield needed to meet the city’s demands in order to “preserve our agreement and restore confidence in the Project.”
“The lack of progress over the past year is deeply frustrating, and your lack of clear progress on a revised project since July is threatening the viability of our long-planned collaboration,” Weinberger wrote.
Weinberger demanded Brookfield pay the city the $50,000 it owes in administrative fees to cover the months of May to September. Brookfield had agreed to pay the city $10,000 a month to cover administrative costs.
The city uses the money to pay consultant Jeffry Glassberg, who is managing the city’s side of the partnership and attorney Jeremy Farkas, who is providing the city legal counsel on the project.
The city demanded that Brookfield pay Burlington Electric Department $30,000, which is the amount Brookfield had pledged toward performing due diligence with department’s District Energy project.
Weinberger also demanded $122,000 to fund a holiday parking initiative. Of that amount, $72,000 will subsidize downtown parking and $50,000 will go to a promotional budget to be used by the Church Street Marketplace and Burlington Business Association.
Brookfield will also begin to reinstate parking on Cherry and Bank streets on Oct. 14. The work is to be completed by Oct. 28.
Finally, Weinberger demanded Brookfield confirm to the city in writing that it planned to open and maintain the public restrooms in the remaining portions of the mall on Church Street, as required by the development agreement, no later than Nov. 25.
Olsen wrote that renovation of the lower level restrooms in the mall had been authorized and was scheduled to start around Oct. 28. The restrooms will be open during normal business hours, Olsen wrote.
Further, Weinberger demanded that Brookfield present an updated development plan at the Oct. 28 Burlington City Council meeting.
Brookfield has told the city it believes the October deadlines are reasonable.
“There’s important additional deadlines in October, and I hope they continue to perform,” Weinberger said.
