toledoblade.com --

The California company that said more than a year ago it would consider creating a $300 million river walk development in downtown Toledo near Swan Creek has made its decision, and the answer is no, Finkbeiner administration officials said yesterday.

"Essentially, it's just that the economy went south … and getting equity financing today is almost impossible, and Tetra Tech - as big as they are - is not immune to that," said Don Monroe, senior development specialist for the city.

"They have done a ton of work here and spent considerable dollars sending people here as often as three times a month from different cities, but they indicated a few weeks back that trying to find a private sector development partner was impossible."

On April 24, 2008, Tetra Tech of Pasadena, Calif., which designed the popular San Antonio River Walk, announced plans to pay Toledo $4.2 million for 25 parcels of city-owned property to create a similar development along Swan Creek through downtown.

The development was to stretch on environmentally remediated property along both sides of Swan Creek from I-75 to the Maumee River. It was to include a pedestrian-friendly walkway along the creek plus office space, homes, shops, and a waterfront promenade in a mixed-use development.

Mayor Carty Finkbeiner yesterday said he would not give up on the company or the river walk project.

"Tetra Tech at the moment said they don't have a private equity partner, but I have an individual in Cleveland who is very interested and I am scheduled to sit down with him Monday or Tuesday," Mr. Finkbeiner said, declining to identify the person. "I am more worried about keeping Tetra Tech interested in Toledo with the economy the way it is."

Councilman George Sarantou, chairman of council's finance committee, said he was disappointed but understands the situation. "Developers are cutting back significantly," Mr. Sarantou said. "Clearly, what we see in Tetra Tech is a very fine company that does not have the financial resources to move ahead right now, but I still believe that area of downtown will be redeveloped."

Tetra Tech spokesman Talia Starkey did not return phone calls seeking comment.

Council agreed May 26 to keep Tetra Tech interested in the project when it voted 11-1 to extend by another 120 days an option the firm had to buy the city-owned parcels - including the Erie Street Market at 237 South Erie St.

Monday is the deadline for the company to pay the city $75,000 to continue with the purchase agreement, said Councilman D. Michael Collins, who cast the only no vote in May to extend the purchase agreement.

"I voted against it in May because they were not willing to deliver the earnest money, per the original agreement," Mr. Collins said. "I am not against the project. I am for it going forward."

The firm's purchase agreement let the company evaluate the property and determine whether it's feasible. It had to pay the city $25,000 if closing had not occurred by Nov. 1, 2008, and $50,000 more if closing had not occurred by Dec. 31, 2008.

On Nov. 5, 2008, Mayor Finkbeiner said Tetra Tech had paid the city $25,000 to retain the option of pursuing the project.

The firm's original purchase agreement allows it to evaluate the property and determine whether it's feasible.

Mr. Collins publicly has said the company did not pay the city the $25,000; the mayor has said that it did.

Contact Ignazio Messina at:
imessina@theblade.com
or 419-724-6171.

Permanent Link