Past due

Developer granted extension

By Steve Lackmeyer, Business Writer
Steve Lackmeyer: 475-3230, slackmeyer@oklahoman.com


Developer Mike Henderson could lose his bid to build a $26 million downtown apartment complex after the Oklahoma City Urban Renewal Authority declared Wednesday he is in default of his construction deadlines.

Henderson first submitted plans for 303-unit Legacy Summit at Arts Central at NW 4 and Walker Avenue in September 2002. Henderson initially indicated construction would start by summer 2004.

Instead, the project has received three deadline extensions — the latest of which expired Saturday, Urban Renewal director JoeVan Bullard said Wednesday.

That prompted frustration from Urban Renewal commissioners, who questioned at their monthly meeting why Henderson continues to delay while other housing developers are moving forward with similarly ambitious downtown housing projects. They also questioned whether the city can afford to “tie up” $2.5 million in tax increment finance funds pledged for construction of a garage for the Henderson project.

“This project needs to move forward,” Larry Nichols said. “Either he’s going to do it or not.”

Henderson didn’t attend Wednesday’s meeting, but met with Bullard afterwards. The developer declined to comment, other than to promise he is still going to build the complex. Bullard said Henderson has 60 days to “remedy the default” in his redevelopment contract. If he doesn’t, Bullard said, Henderson could lose his designation as developer for the publicly owned land.

Bullard isn’t without sympathy for Henderson.

“Part of it was he wanted to go with a lending package that site could not meet the benchmark for, and that took an inordinate amount of time,” Bullard said. “The property had a filling station with leaking underground storage tanks, and that took time with Mike being a very, very conservative developer.”

Other problems, Bullard said, include Henderson’s inability to get updated construction cost estimates in the wake of Hurricane Katrina and with fears of more damage after another approaching storm, Hurricane Wilma.

Bullard thinks the Legacy Summit complex will still be built. He reminds those frustrated with the delays that Henderson’s projects have been successful because he is “very thorough.”

“Mike is never going to be the first one to jump in the river and swim to the other side,” Bullard said. “But he’ll be there at the end, pulling people in to cross the river with him.”