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Economy blamed as Central Park project dropped
(by Mike Klimko - October 09, 2008)
Economy blamed as Central Park project dropped
By MIKE KLIMKO
An appraisal last week of the poor economy led the Coral Co. to drop its proposed redevelopment of the SOM Centre shopping plaza area in Solon, according to project manager Jeffrey Epstein.
Based on the slim chance of obtaining the financing necessary for the Central Park project, Coral decided to scrap it, Mr. Epstein said.
Solon voters were to cast ballots on Nov. 4 on forming a new zoning classification to permit construction of the lifestyle center east of SOM Center Road (Route 91), between Bainbridge and Solon roads. The issue for planned-use development would be removed, Mr. Epstein said.
On Friday, Coral decided to end its efforts to construct offices, retail and residences upon meeting with project principals Ronald Oehl, of TLM Realty in New York, and Developers Diversified, of Beachwood, Mr. Epstein said.
The developer estimated the cost of the project at $700 million. Plans called for 555 residences, 15 restaurants, more than 800,000 square feet in retail, two anchor department stores and more than 1 million square feet in office space.
"We had been moving forward as planned with the project," Mr. Epstein said. "It became apparent, with the conditions in this economy, the worst economy since the Depression, that financing was going to be impossible," he said.
"We've decided that the only responsible decision, and the right decision, was to stop the project and remove the project from the ballot. We didn't want to get into a situation where we started the project and couldn't finish, for any reason. We didn't think that was right for the community."
Regardless of the decision to give up Central Park, Coral and Peter Rubin, president and chief executive officer of the company, learned that there is opportunity for development in Solon, Mr. Epstein said.
"We were unable to bring in the vision of Central Park," he said. "We had been proceeding full steam ahead until Friday. The banks are just not making loans right now. The real-estate markets have really dried up."
The decision to drop the project was a disappointment, he said, considering the time, effort and money put into it since the proposal was made late last year to City Council. Coral enjoyed working with the city administration and the residents, Mr. Epstein said.
As part of the project, Coral obtained about 70 purchase agreements for the homes in the Sharondale neighborhood and others on the north side of Bainbridge Road adjacent it. The company called the property owners to the Solon Community Center on Sunday to let them know that Central Park would not be developed, Mr. Epstein said.
"We thought it was right that they heard from us. It's really a tremendous group of people. We had a strong relationship with them. They were our biggest supporters from day one," he said.
"We'll look at other opportunities. We have a lot of properties we own and manage and a number of other projects going. We certainly hope to have the opportunity to work in Solon in the future."
Central Park votes won't count
The ordinance to place the new zoning classification to permit the redevelopment project was repealed Monday by City Council.
The repeal was to be forwarded Tuesday to the Cuyahoga County Board of Elections, Law Director David J. Matty said. The board would invalidate any votes cast on the issue, although the ballots have already been printed, he said.
There would be no official vote on the zoning issue, and any votes cast on it would not be counted, Mr. Matty said. Notices at the polls in Solon are to alert voters and poll workers to the status of the issue, he said.
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