Mayor Jim Gray: Developers back out of CentrePointe project

LEXINGTON, Ky. (WTVQ)- The new developers of the long-delayed CentrePointe project in downtown Lexington say they’re out of the project, this after they were notified by the City of Lexington that CentrePointe would not be a potential new home for the Urban County Government Center.  The city said in a letter to the developer’s attorney that it would be too expensive to relocate to CentrePointe.  It is not clear what will happen to the property.

After a Tuesday meeting where proposals were heard by the city, attorneys for Matt Collins and Bridgeton Holdings wrote attorneys for the city, notifying it of the decision.

ABC 36 got a copy of that letter which says in part, “we will no longer pursue this particular project.” In the letter, the developers indicate they wouldn’t move forward with the project if City Hall is a stand-alone building.

“We do not believe that we have a value-added role in this narrower project,  and as we agreed from the beginning, such a project is not financeable on a stand-alone basis,” says Jonathan Miller, attorney for the developers.

Mason L. Miller, on behalf of the city says in part, “We appreciate the effort your clients made to develop a proposal for the development of the Centrepointe block. As I explained at the meeting, the proposal submitted by Bridgeton Holdings and Matt Collins was simply uneconomic and required the City of Lexington to subsidize the private development of expensive condominiums and hotels by requiring the city to pay rent at a price that would be more than double other alternative options for City Hall.”

The letter, addressed to Jonathan S. Miller also calls a letter from the developers a “take it or leave it” approach.

In a statement from Lexington Mayor Jim Gray, he says, “The proposal simply asked too much from taxpayers. While everyone wants to see progress, it shouldn’t come at a premium to citizens. The developers were unwilling to consider the boundaries Council felt were necessary to continue negotiations.”

It was August when Collins and Bridgeton Holdings announced they’d take over the project from Webb Companies. Spokesperson for the mayor, Susan Straub says it’s too early to determine what happens next.

We’ll bring you more information on this as it becomes available.