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City recoups some Central Park expenses
(by Mike Klimko - October 22, 2008)
City recoups some Central Park expenses
By MIKE KLIMKO
The Coral Co. reimbursed $44,563 to the City of Solon to offset the cost of marketing, sewer and traffic studies related to Central Park by the time the developer withdrew the project, according to city records.
Solon spent $121,161 on the studies and legal fees involving in the planned-unit development proposed at the SOM Centre shopping plaza and adjacent property east of SOM Center Road (Route 91).
The city reimbursed a total of $10,300 to the city officials who attended a national convention for developers and retailers last May in Las Vegas, Nev., Finance Director D. William Weber said. City Councilmen Edward H. Kraus, Robert N. Pelunis, John T. Scott and Edward K. Suit, Mayor Kevin C. Patton and Planning Director Robert S. Frankland attended the convention.
Coral agreed in the course of discussion of its redevelopment proposal begun last year to share the cost of the various studies. The developer accepted the commitment among the terms of the agreement approved Aug. 19 by City Council.
Solon received reimbursements even though the agreement between the city and the developer had not been in effect, Coral President and Chief Executive Officer Peter Rubin said. "The development agreement was finalized but not signed. The contract was being transmitted to legal counsel when we pulled the plug on Central Park. There is no development agreement," he said.
"We made a commitment to pay for consultant work, regardless of a development agreement. Our understanding is, for any legal fees dealing with negotiations, we would reimburse the city for it."
Mr. Rubin said he has not seen any invoices for legal fees to Solon and could not comment on those. Project manager Jeffrey Epstein and his partners were working with city officials on the processing of invoices, Mr. Rubin said.
Coral has not been sent invoices for legal work done on behalf of Solon, according to finance department records.
Solon paid legal fees totaling $54,125 to the municipal legal team, including a bond counsel and a development consultant. The city spent $27,034 for bond counsel work provided by Squire Sanders & Dempsey, of Cleveland, and $27,091 for negotiation of the development agreement by Mansour, Gavin, Gerlack & Manos, of Cleveland.
City officials are to determine the legal fees for Rademacher, Matty, McClelland & Greve, of Cleveland, home office to Solon Law Director David J. Matty, Mr. Weber said.
Coral reimbursed $18,970 to Solon for sewer studies by Camp Dresser & McKee, of Cleveland, and $24,270 for traffic consultant work provided by Wells & Associates, of McLean, Va., with an unpaid balance for traffic consulting of $1,323.
City officials will be able to use the results of the studies even though the plans for Central Park are gone, Mr. Patton said. "We have to do something with the traffic," he said. "The marketing study can be used when the time comes to move forward, to tell us how to move forward with redevelopment."
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