Akron Beacon Journal (OH) - Sunday, February 7, 2010
Author: Gina Mace , Special to the Beacon Journal
The City Council could soon begin selling off the former State Road Shopping Center site.
The council could vote Monday on whether to begin the transfer of more than 25 acres of the former center to developer Stark Enterprises of Cleveland.
The city purchased the plaza for $10 million in 2008.
The sprawling shopping center was mostly vacant when the city declared it blighted and purchased it. The plaza was then torn down, while the city sought a developer interested in breathing new life into the area.
The owners sold the property to the city rather than face a court battle over eminent domain.
In May 2009, Mayor Don Robart announced the selection of Robert Stark as the redeveloper. Stark is the creator of several retail developments, including the Strip in Jackson Township, Crocker Park in Westlake and three plazas in the Montrose area.
Last month, the proposed contract between Stark Enterprises and the city was presented to the council for review.
Stark dubbed the possible redevelopment Portage Crossing, which would face Portage Trail.
Current plans ? which Stark said could change ? call for three big-box stores. A grocery store would be the anchor.
The city will construct and maintain a road through the development and add parking lots.
Under the contract, Stark will purchase the land in two or three phases. The phase-one purchase of 16.79 acres includes most of the land north of Portage Trail and about a quarter of the acreage south of Portage Trail.
Stark told the council he hopes to complete phase one and two at the same time.
Stark has 18 months after receiving title to the property to complete construction, with an option for two six-month extensions granted by Robart.
Finance Committee Chairwoman Kathy Hummel and Councilwoman Carol Klinger want the council to require that Stark seek its approval for any time extensions.
''As a community, we have already sunk more money into the project than the developer,'' Klinger said. ''We owe it to our constituents to know what the obstacles are and how [Robert Stark] is going to overcome the obstacles. It's a very small request.''
Falls development director Sue Truby and Stark Enterprises Chief Operating Officer Steven K. Rubin oppose the council's review of any extensions or other changes to the contract.
''Everything we presented [to council] is the final result of negotiations after eight months,'' Truby said. ''We went through many, many iterations on this.''
Rubin said the council should view Portage Crossing as a two-year project.
''For us to undertake this type of project in this economy with a 12-month turnaround is very difficult and I don't think we'd be willing to do that,'' Rubin said.
Under the contract, Stark would be required to give quarterly updates to the city. Truby said she would share those with the council.
Stark Enterprises would pay $3,793,500 for the State Road property.
Of the purchase amount, 75 percent would be placed in an escrow account for use by Stark during construction.
Hummel estimates that the city's investment in the project is $17 million, including the land purchase.
''My goal is to be as transparent as possible so the taxpayers know what their investment is,'' Hummel said. ''I am in favor of the project. We need some development on State Road. I will be supporting this. I think it is good for the community.
''I just want everyone to know what we're investing.''
Copyright (c) 2010 Akron Beacon Journal
