Recordpub.com - Economy slows downtown Kent plan Officials remain optimistic about proposed redevelopment project

By Matt Fredmonsky
Record-Courier staff writer
The pace of redevelopment planning for a downtown Kent block has slowed considerably since tighter lending procedures seized the nation this fall, but city officials and development partners are optimistic the project will come to pass.
Kent leaders say the Fairmount Properties proposal to level the block bordered by Haymaker Parkway, Erie, South DePeyster and South Water streets to build a mixed-use retail and residential project has returned to a normal pace after progressing on a rather ambitious timeline.
The Fairmount proposal, the latest since the city's partnership with California-based Right Dimensions emerged in 2004 and ended in an eminent domain court settlement this year, has not yet evolved into a development agreement with the city. Kent officials say the delay is welcome news, as it will allow the city to catch up on overall master planning for the downtown district.
"I know it's tempting to see the credit crisis and think the world is coming to an end," Kent City Manager Dave Ruller said. "There's no question it's slowing."
By the end of the year, the city is planning to demolish the three houses at the corner of Haymaker Parkway and South DePeyster Street it obtained for $399,999 from Right Dimensions in September. The old Jerry's diner, which the city purchased as part of a $827,000 deal for several properties in the block this summer, will be moved this month to continue preparing the area for the project.
On Friday, Fairmount Properties principal partner Randy Ruttenberg said a dislocation in credit markets has caused development nationwide to come to a virtual halt, but he added his partners see this as a temporary circumstance.
Ruttenberg said Fairmount has even discussed a preliminary budget with the city, which entails spending $1 million-plus of the collective group's private capital on preliminary design work, legal documentation and land option payments, if required.
"Community patience will be rewarded with an extraordinary development, which will translate into large returns and increased tax revenue, job creation and retention (and) stronger ability to recruit both students and faculty to Kent State," he said. "And we believe (the project) will have an income multiplier affect throughout both the local and regional economy."
The optimism is shared by officials at Kent State University.
Yank Heisler is dean of KSU College of Business Administration. The Ravenna native and Harvard University graduate is the retired chairman of the KeyBank National Association and former CEO of McDonald Financial Group. He has an acute understanding of the financial system's inner workings and how those affect Kent's plans.
Heisler remains positive the financial picture for Kent's mixed-use development will clear up in the next 12 to 18 months despite other collapsing development plans in the greater Cleveland area.
"The good news story is we're all still very optimistic about a project being able to get done," Heisler said. "But I think we're all very realistic ... to think we need to step back and not force the plan to get started and executed in the middle of all this. There's a lot more work that needs to be done on the financials."
Kent Economic Development Director Dan Smith said advancement of the estimated $45 million project hinges on the availability of financing.
"The biggest thing is (Fairmount Properties) has not stopped their predevelopment (work)," Smith said. "Had they come to us and said, "Hey look, we're not going to spend any more money on pre-development right now,' given the market, I think we would really be in a different situation than what we are."

7.	Posted by Dose of Reality November 16, 2008
	my interest and comments were to ask why the city is willing to wait on fairmount properties because it's obvious they have over extended there financies and abilities. at this time, there is no development agreement in place and would guess there has been additional discussion to document fairmount's position or willingness to develop the project without the city gifting all of the land along with a bucket of funds. the city has spent a lot of time & money evaluating the project and the three initial developers just for this reason and i wonder why they don't move to the second or third position developers. each of the original developers were creditable and willing to take on the project and now that rizzuto is in the project the city has another player/developer in the arena. excuses will not break ground for any high leveraged developer!! just take a look at the phoenix project. maybe mr. burbick can be number five??? make it happen or eat crow!

6.	Posted by Dose of Reality November 16, 2008
	BostonTeaParty just wanted to help you out with your request. 1. the property at 100 crain ave. under the name of robert mayfield has a market value (county auditor site) including land & building totaling $69,300.00. sale price $163,900.00 2. the property at 607 mantua under the name kay bricker has a market value (county auditor site) including land & building totaling $162,100.00. sale price $330,000.00. let me know the price of land or land & building for each of the other property owners involved in the city bridge acquisition. I was always under the impression that land or building values were priced or valued based on square foot of land/building and if that's correct why is there such a drastic difference in these two properties and the previous properties? although I can not support or prove JUST THE FACTS comments which state the city gave inside support but I can guarantee robert Mayfield/kay bricker received special treatment, assistance and consideration to relocate their operation in downtown. In fact, at one time the city administration was looking at ways to take property from current owners and hand it over to the operator or offer them a sweet heart lease! i also do not recall any other property owners receiving such a high value per square foot for tear-downs (unless the property is located in our historic downtown district?