The Strata (former Goodwill property)

[Pete]

From the Gazette:

Suit settlement
Oklahoma City is in the process of settling a seven-year lawsuit either monetarily or via land swap.
BY MIGUEL RIOS


Oklahoma City acquired Hilltop Plaza’s properties in 2013 for $2.5 million through eminent domain. - PETER J. BRZYCKI


A land swap could settle a seven-year lawsuit with the city. The suit involves Hilltop Plaza LLC, which owned two properties that the city acquired through eminent domain for Scissortail Park’s construction. Despite the city’s acquisition, Hilltop officials challenged the amount they received and called for a jury trial to determine just compensation.

Hilltop Plaza’s properties were on the corner of Robinson Avenue and Oklahoma City Boulevard, which the Scissortail Park Foundation’s executive director once called the “billion-dollar corner,” as it will be situated across from the future Omni Oklahoma City Hotel, the new convention center, Chesapeake Energy Arena and a streetcar stop.

Despite the ongoing litigation, the city legally took control of the businesses in 2013 when it deposited $2.5 million to the court as part of the eminent domain process. Those properties are now part of the park’s promenade and the future home of an art installation.

Suit history

Hilltop Plaza purchased the two properties in December 2007 and February 2008 respectively for a total of $2.26 million. In later court documents, Hilltop’s managing members write that they purchased the properties because of the location.
At the time of Hilltop’s purchase, construction of the Devon Tower had just been announced and there were discussions about a new convention center and Oklahoma City Boulevard.

“Based on these and other facts, we made a decision to purchase the property which is across from the [Chesapeake Energy Arena], close to the existing convention center and on the boulevard in the middle of all future developments,” Hilltop officials wrote. “We agreed to pay more for the corner lot because it is a hard corner with sizable frontage on Robinson and also SW 3rd & 4th Street.”

In 2010, the city sent Hilltop Plaza a notice that the city was interested in acquiring its properties for the new MAPS 3 Downtown public park project.

“We do anticipate that what we are
moving toward is the swap.”
—Amanda Carpenter


In 2012, the city offered Hilltop a cumulative $2.175 million for the properties. However, Hilltop Plaza officials responded to the letter, saying the properties were some of the most valuable downtown, so they made a counteroffer to sell the properties for $9.571 million.

Because the two parties could not come to an agreement, the city began a condemnation case.

In 2012, commissioners were appointed to assess the properties’ value, and in 2013, they reported Hilltop Plaza should receive $2.5 million for the two properties.

Amanda Carpenter, deputy municipal counselor, said the city then deposited the funds and took possession of the property.

“Hilltop filed what’s called a demand for jury trial, which means they were challenging the amount of the commissioners’ award,” she said. “Oklahoma City was preparing for trial, and ultimately we ended up coming up with a settlement agreement, which was approved by council. … The park has been built and built on that property. Previously, we were litigating the value. Now we’re reached a settlement agreement as to the value.”

New agreement


The seven-year lawsuit could be settled by giving Hilltop Plaza the former Goodwill Industries building, 410 SW Third St. - ALEXA ACE
Alexa Ace

The settlement agreement, which was approved just last month, lays out two possible options to close the case. Hilltop has until Dec. 1 to decide which option to pursue.

One option is a property swap. In exchange for Hilltop’s properties, which are already part of the park, they would receive the former Goodwill Industries building, 410 SW Third St.

If Hilltop officials take this option, they would return the $2.5 million they received in 2013 and pay the city an additional $650,000. Hilltop would also agree to close by Dec. 25 and demolish the structure within 60 days of closing if it chooses this option. Other stipulations include specific timing requirements of any future construction and ways the property can be used.

“Hilltop agrees unless it received written permission for the development of a hotel or motel on the swap property, it will not propose or construct a hotel or motel on the swap property,” the agreement reads. “Hilltop also agrees the minimum number of stories of any building constructed on the swap property shall be five stories.”

The other option is a monetary settlement. The city would pay Hilltop Plaza a total of $4.5 million, which would be made up of the $2.5 million commissioners assessed in 2013 and an additional $2 million.

Carpenter said the city doesn’t necessarily prefer one option over the other.

“Both of the options were acceptable to the city council because they agreed to it in the settlement agreement. We do anticipate that what we are moving toward is the swap,” Carpenter said. “Hilltop is going through what’s called a due diligence period, where they’re looking at the title to the property to make sure there’s a clean title; they’re looking at the environmental conditions. One of the provisions of the swap is that they have to demo the Goodwill building within 60 days of closing, so they’re looking at what that costs. They’re doing all their steps to make sure that if they elect to take the swap, that they can actually develop.”

The trial for the case is set for Dec. 9.

[Laramie]

Every time you see 'Hilltop' it reminds me of the on-going series of AMC's Walking Dead.

Now the irony, seems as though everything is like a game of Zombie chess--you move the wrong man, you open yourself to strategic backlash. We know this resulted from the previous administration--however having to watch your back is what keeps mayors & city managers second guessing their next moves. It goes within the realms of city hall's territory.

Good luck with hashing out this situation of moving parts; hope there's a win-win situation involving both parties.

[Pete]

Being demolished today:

[Canoe]

Being demolished today:

Do you know if it will be fenced off or left open to parking while they get their permits?

[Pete]

Do you know if it will be fenced off or left open to parking while they get their permits?

Once they clean it up, I bet it will be open for parking.

The city has been using that lot for a while for staging landscaping materials for the boulevard (see on the left side of that photo).

[Laramie]

Brings back memories of the many donations our family made (in the form of dishes, furniture) to this Goodwill site. Goodwill always made good on pickups especially if you donated nice items for immediate resale.

Goodwill relocated south of what's left of Tolen Park.

Wasn't that far from the Hostess-Wonder Bread site (The Peake), in the early 80s.

[Pete]

BTW, this property is now privately owned (Mazaheri) so don't be surprised if you start seeing a charge to park there.

[Roger S]

It actually looked like that yesterday when I drove by at 5:30 PM

[Pete]

[Pete]

[Pete]

Old building is a now a complete goner:

[5alive]

In the upper left part of the pic you can see many many trees planted along the Boulevard...imagine how beautiful that will be when those trees are more developed!

[Pete]

In the upper left part of the pic you can see many many trees planted along the Boulevard...imagine how beautiful that will be when those trees are more developed!

[Pete]

When Fred Mazaheri sued the city and then bought this property as part of the settlement, built into that agreement was that he had to start construction by June 1, 2023 and be completely finished no later than June 1, 2026.

He was also required to submit his plans for the city's approval by the end of 2020.

I haven't seen any progress on this whatsoever, other than installing pay-for-parking machines after the city paid to demolish the old structure.

[Laramie]

Was Mazaheri suppose to develop some hotels or some kind of development in the upper portion of the 43 acre Producer's COOP Mill site...

[Pete]

Was Mazaheri suppose to develop some hotels or some kind of development in the upper portion of the 43 acre Producer's COOP Mill site...

He owns the old lumberyard property just north of the cotton mill.

It was the site when the pie-in-the-sky Bricktown were proposed.

[chssooner]

Issues Oklahoma Ciry have an abnormally high number of developers who don't do what they are supposed to, or claim they will, do? Or are they not as wealthy as they thought, and the costs are higher than they could imagine?

Seems a lot of the grand projects get stopped in their tracks not by the city, but by the developers.

[onthestrip]

When Fred Mazaheri sued the city and then bought this property as part of the settlement, built into that agreement was that he had to start construction by June 1, 2023 and be completely finished no later than June 1, 2026.

He was also required to submit his plans for the city's approval by the end of 2020.

I haven't seen any progress on this whatsoever, other than installing pay-for-parking machines after the city paid to demolish the old structure.

I see at least a couple properties he's involved in are up for sale, such as the bricktown parking garage. Maybe this means hes gearing up for this?

[Pete]

I see at least a couple properties he's involved in are up for sale, such as the bricktown parking garage. Maybe this means hes gearing up for this?

He's a speculator.

He has been trying to sell the east Bricktown site where the Canopy Hotel was proposed; also the old bank drive-thru just north of the OKC Museum of Art. Also owns the old lumberyard just north of the old cotton seed mill. All this stuff has been for sale for several years.

The only thing I know he's actually built is the shopping center at Memorial & May.

[HangryHippo]

Which is bizarre to me because, as shopping center goes, that one is attractive.

[Urbanized]

Issues Oklahoma Ciry have an abnormally high number of developers who don't do what they are supposed to, or claim they will, do? Or are they not as wealthy as they thought, and the costs are higher than they could imagine?

Seems a lot of the grand projects get stopped in their tracks not by the city, but by the developers.

I don't know if it is unusual for a city our size, but I think the main issue at work here is that we (the community) often confer the title of "developer" without merit. Which causes many people to put too much faith in renderings that are often pie in the sky or simply a part of due diligence on the part of someone who would LIKE to make something happen. Speculative developers often have really great renderings put together as investment pitches, and getting them into the media (whether traditional media or social media) is often just a fishing expedition.

When something like that fails to materialize is it REALLY a "failed development?" I don't believe so. I think it's instead a case of misinterpretation on behalf of members of the public who are emotionally invested in something to which they have not given so much of their belief.

We've seen many such fishing expeditions over the years, and unfortunately members of the public or at the very least development enthusiasts have often put emotional investment into something that was really just completely speculative.

After closely watching downtown development in this city for close to 30 years (and often being very close to many of them in some manner) experience has taught me that the splashiest ones are often the ones most likely to be trimmed back or not delivered at all, while the most reliable are often the ones that you don't hear about until they are past the point of no return. Real developers usually don't care to have the details of their projects out in the public realm unless or until there is some benefit in having them there.

[Pete]

Issues Oklahoma Ciry have an abnormally high number of developers who don't do what they are supposed to, or claim they will, do? Or are they not as wealthy as they thought, and the costs are higher than they could imagine?

Seems a lot of the grand projects get stopped in their tracks not by the city, but by the developers.

When I lived in L.A., there were literally hundreds of proposed projects -- all much bigger than what we are discussing here -- that never got off the ground.

Skyscrapers, mega-malls, huge housing projects... It's the nature of the beast, it's just that we don't notice or have the same emotional investment in other cities.

I've said the same thing about the story that gets told over and over again about OKC and how urban renewal and mass demolitions ruined the core for decades. Just go spend some time in other cities and you'll see exactly the same thing. In fact, most haven't done as well as OKC in filing those big holes.

[Urbanized]

...Skyscrapers, mega-malls, huge housing projects... It's the nature of the beast, it's just that we don't notice or have the same emotional investment in other cities...

Exactly.

I think to some extent it is a vestige of a time when the only way Oklahoma could get ANY development was to incentivize it, and even then we missed nine times out of ten. Seeing others invest in our city is often highly-craved PERSONAL validation here, and so it stings more when we are counting on something and it fails to materialize.

But, like Pete says, it's the nature of the beast. Go check out the "designed but never built" archive of any major architectural firm anywhere in the world. I'll promise it's a very thick portfolio.

[chssooner]

When I lived in L.A., there were literally hundreds of proposed projects -- all much bigger than what we are discussing here -- that never got off the ground.

Skyscrapers, mega-malls, huge housing projects... It's the nature of the beast, it's just that we don't notice or have the same emotional investment in other cities.

I've said the same thing about the story that gets told over and over again about OKC and how urban renewal and mass demolitions ruined the core for decades. Just go spend some time in other cities and you'll see exactly the same thing. In fact, most haven't done as well as OKC in filing those big holes.

I guess it is just living 3 hours north of a city that gets basically every development going, and usually bigger than they ever dreamed.

I hope something comes of this, but with OCURA not holding him accountable, I'm not going to hold my breath.

[Pete]

I guess it is just living 3 hours north of a city that gets basically every development going, and usually bigger than they ever dreamed.

This isn't even remotely true.