Chesapeake empire marches on

[CuatrodeMayo]

I am sure that the Chesapeake buildings are fully sprinkled, regardless.

[securityinfo]

Yeah I don't understand why their newest buildings can't be 5 or 6 or 7 stories instead of 4, like all the others. That would add a little aesthetic diversity and they wouldn't run out of room as fast.

I believe the PUD stipulates a maximum of 5 stories.

[BDP]

If Apple wanted to move it's campus from Cupertino to NW OKC and bulldoze some 80s suburban glut, I'm sure no one on here would complain. So why should it be different with one of our own.

At best, they have removed suburban glut and replaced it with... suburban glut. I like their landscaping, too, but their buildings are not that impressive and have gotten more and more stale as they've expanded.

At worst, they have taken a perfectly viable community district and converted it to an exclusive corporate campus that is no more ambitious than a decent retirement community. Meanwhile, downtown vacancies are still less than healthy and many other communities struggle to maintain their viability. While Chesapeake continues to pay stupid amounts for its acquisitions, the opportunity costs to the Oklahoma City community as a whole are just as steep.

Basically, all of this is based on what they've done to date. They could easily make up for their impact at some point if they actually plan on bringing back some businesses the area has lost or even growing it. No doubt, CHK is a great community player, but this project and the Mclendon "master plan" has been pretty ridiculous to date, as it basically amounts to taking a good district and making it... well, what, good? All while squeezing out businesses to build dorms for offices. It's just all kind of been one big silly and expensive lateral move so far, imo. Again, hopefully that will change and the master plan will prove to make teh upscale area upscalier.

[jbrown84]

It's interesting to contrast what people think of Devon's plans with what people think of what Chesapeake is doing. From the conversations I've had with people, it matches the opinions expressed on OKCTalk.

[traxx]

At best, they have removed suburban glut and replaced it with... suburban glut. I like their landscaping, too, but their buildings are not that impressive and have gotten more and more stale as they've expanded.

At worst, they have taken a perfectly viable community district and converted it to an exclusive corporate campus that is no more ambitious than a decent retirement community. Meanwhile, downtown vacancies are still less than healthy and many other communities struggle to maintain their viability. While Chesapeake continues to pay stupid amounts for its acquisitions, the opportunity costs to the Oklahoma City community as a whole are just as steep.

Basically, all of this is based on what they've done to date. They could easily make up for their impact at some point if they actually plan on bringing back some businesses the area has lost or even growing it. No doubt, CHK is a great community player, but this project and the Mclendon "master plan" has been pretty ridiculous to date, as it basically amounts to taking a good district and making it... well, what, good? All while squeezing out businesses to build dorms for offices. It's just all kind of been one big silly and expensive lateral move so far, imo. Again, hopefully that will change and the master plan will prove to make teh upscale area upscalier.

So some ragged old strip malls and alot of red dirt are no worse than what CHK has built? I believe the more upscale area has always been from Nichols Hills Plaza on North. Not South, where CHK has been buidling. I think CHK's buildings are an improvement.

I think Devon's plan is great for the city, but I don't see what's wrong with CHK.

What has CHK bulldozed that is irreplaceable? And I don't mean that as a snarky comment, I truly want to know. I can't think of anything other than some ugly buidlings. If memory serves, South of those buildings there was nothing.

[jbrown84]

Pearl's. The new location is just not the same.

[traxx]

Yeah, I was disappointed to see Pearl's move. But other than that, I don't think they've displaced anything that special.

[metro]

traxx, I can agree with both sides. I realize it was and still is a nice district full of retail and restaurants, but again, they didn't destroy anything iconic, nor used eminent domain. They paid 3-5x market value for all the properties, thus making everyday joes alot richer and able to do more in their community. I think the master plan for the area will be a lot better than the crappy shopping centers we had there.

[Pete]

I don't think there are two sides... I think we are all on the same side: Hoping that CHK turns a good area into something better.

But you certainly can't blame people for being a little nervous, especially since Chesapeake refuses to reveal it's plans. And while no single business is that big of a deal, it's starting to be a long list of those that have left the area. I personally miss the Varsity and will miss the Regal Room.


The other thing to consider is that to do anything major, they will likely have to displace many more businesses. And whatever they build back will certainly be much more expensive than now and I fear the rather eclectic charm of that area could be forever lost.

The Western corridor is one of the few places in town that is unique, so there is lots to lose as a community.


Generally speaking, I am very excited about what could become of NH Plaza even though I know that will involve major surgery. The upside is huge and if I had to bet my own money, I'd predict CHK will do a great job in that area and virtually everyone will be pleased with the results in the long term.

[jbrown84]

I'm also on the fence about it. They make the area look really nice, but I hope it becomes more mixed use, and I hope they don't tear down Nichols Hills Plaza, especially the southern section. I was at Mamasita's today and it occurred to me that it would make much more sense to tear down the Glenbrook Center (where Varsity was) along with it's surface parking, and build a new "phase III" of Nichols Hills Plaza there, across the street to the south of the current one.

[Pete]

^

And that's another valid point of concern: Thus far, all CHK has done is scrape and rebuild. I'm not aware of them renovating anything and that's scary given how many existing buildings (which all host on-going businesses) they currently own.

Given their acquisition pattern all around the southern section of NH Plaza, I would be shocked if they don't have plans to bulldoze virtually everything that's there now. Otherwise, it wouldn't make much sense for them to be acquiring all those neighboring condos, gas stations, and even NH Town Hall.

There is just a lot of uncertainty and Aubrey & Co. aren't talking. You can't blame people for wanting answers.

[securityinfo]

Pearl's. The new location is just not the same.

Yes, much less chance of roaches in my meal at the new place.

After 20 some-odd years it needed some help.

The vast majority of the area that Chesapeake now occupies consisted of older homes that had been allowed by their slumlord owners to fall into disrepair. There are still a (very) few small but nice homes in the area, but Chesapeake seems uninterested in aquiring them.

Of course, as has been stated, if Chesapeake were to level all of the areas that they now own, that would be a lot of bare space.

I have my doubts that Chesapeake will ever make its plans for the area completely public. A small amount of detective work illustrates that Chesapeake has taken great pains to keep certain aquisitions from becoming public knowledge (probably due to the amounts of money over and above book value paid).

But again, if they were on the East coast, or even the Dallas or Houston area, the comparable costs of building an entire campus would be several times higher. And perhaps overspending on your infrastructure is one of the ways to keep the
buyout wolves at bay.

[Saberman]

Most of that area was typical of a lot of main intersections around town, because of the lack of restrictions on construction and type of construction, we get mismatched buildings and land use.

Until the city planners use building codes and land use regulations we will never have consistency along these main streets. That is hard because less restriction means more building, and more business, and more taxes. The only problem with that is you get restaurants next to car body shops, etc.

Unless someone "like CHK" comes along buys all or most of the land in an area, and uses some restraint to ensure proper land use planing when building up that area. We can only hope that is the plan in this case.

[tuck]

Tuck, I talked to him today and he said they absolutely will not be operating another room. They'll continue to cater, but only at remote locations -- they will no longer operate a facility.

WOW, news to me. It sounds like he decided to lease a space with less square footage; only enough room for a catering kitchen, not an event space.

[Pete]

Tuck, yes, that's what I meant.

Just a kitchen with a small amount of office space, not an event facility.

Sorry for the confusion.

[Pete]

More news, just not much information:

************************

Chesapeake to rebuild Nichols Plaza, add offices, housing
By Steve Lackmeyer and Jack Money
Business Writers

Chesapeake Energy Corp. plans a retail shopping center along Classen Boulevard, to rebuild the Nichols Hills Shopping Center and slowly is releasing more details about its next projects, including more offices and housing.

Company officials say the plans will make the area around its home campus, east of Western Avenue and south of NW 63, a better place to live and work for its employees — and for everyone who lives or works in that part of town.

But Oklahoma City Planning commissioners say they are tired of seeing the company's individual zoning applications and want to see a more complete picture.

Neighbors also are upset about ongoing construction and the disruptions it has caused.

"We've repeatedly asked for communication,” commissioner Nick Gales said. "The Chesapeake people have flippantly said we're working on it, later, with a wink. I think that later is now. We need more information.”

But it's unclear how much of that information really exists.

Dan LeDonne, Chesapeake's director of facilities and construction, said the company's rapid growth has left it unable to commit to the long-range plan being sought by its neighbors and planning commissioners.

"The plan changes every day,” LeDonne said at a recent planning commission meeting. "We grow by 200 employees a year on our campus. We don't know what direction our campus may need to grow. We may need to grow east, we may need to grow west.”

New details are beginning to emerge
Some new information is emerging because of recent zoning applications and a meeting company representatives had with merchants at the Nichols Hills Shopping Center.

With that project, company officials say the "greatest likelihood” is that the southwest part of the shopping center will be rebuilt, starting no sooner than about two years from now, but no firm plans exist. Residential development may be part of its mix — at least on land to the west of the shopping center, which already is residential in use — and the company may seek to close Avondale Drive as part of its plans.

But Henry Hood, Chesapeake's senior vice president of land and legal, said plans for the property remain conceptual, for now.

He said Chesapeake has negotiated five-year leases with tenants in the shopping center, but added the company negotiated two-year kick-out clauses within the lease for a handful of tenants in the center's southwest corner.

Hood said the company included the clauses to give itself the ability to clear the buildings if it decides to tear them down.

"Now, as to whether that will happen, we aren't sure,” he said. "It may be at the end of two years, they will be allowed to stay on a month-to-month basis. Or, they might get a new lease, depending on the status of our development plans. The only thing that is certain is that it will not happen in less than two years.”

In January, the company obtained permission from the planning commission to rezone property directly south of the shopping center, along a creek just west of the office campus between Western Avenue, Grand Boulevard and NW 63.

The planned unit development zoning allows Chesapeake to rebuild the creek with a "terraced look” with landscaping that would match the appearance of the creek as it flows through the company's campus. The plan also calls for an open space corridor that could be developed into offices and retail.

Planning commissioners also approved a separate request to rezone a stretch of land on Classen Boulevard's east side, between Grand Boulevard and NW 56.

The land is being developed as a shopping center called "Classen Curve.”

Company officials say they anticipate the project, designed by architect Rand Elliott, who also has overseen the campus development, will include multiple single-story buildings. Dirt work is under way at the site now.

"We are talking to potential tenants for a project that we intend to be retail in nature, with mixed uses, having stores and restaurants,” Hood said. "We don't have any firm tenants yet, but we are interested in exploring the possibilities for finding some. There are ongoing discussions.”

Company officials also say they plan additional construction on high ground east of the company's main campus.

Residential and office properties are possibilities for that land.

Officials refused to confirm rumors they are considering building a hotel as part of the company's expansion.

Why voting was delayed
Planning commissioners' frustration with Chesapeake bubbled up at an April 24 meeting, when they delayed a request by the company to close a street east of its campus to make room for a child care center for its employees.

Then, they unanimously agreed Chesapeake must be more forthcoming about its master plan.

"Some comprehensive plan needs to be put in place by the developer that permits those who choose to remain to live there to not have streets torn up, their homes and gardens covered with dust, and have noise keep them awake at night,” Planning Commissioner Janis Powers said.

"It's time for us to see the bigger picture here. It's time for Chesapeake to work out a way to peacefully co-exist with the people who will continue to be a part of their world.”

But Hood's response is that the company is being as forthcoming as it can.

"We have long-term plans, conceptually speaking,” Hood said. "We want to modernize Nichols Hills Plaza.

"It hasn't changed in 40 years, and we see it as a potential Class A venue where we can create a wonderful shopping environment for our employees, for Nichols Hills residents and for others in the surrounding community.

"We want to develop the Classen Curve area into retail for the same reasons. We also want to develop land east of our campus, east of Classen, into a residential, retail and office development,” he said.

"But a lot of it is up in the air. It depends upon property acquisitions, and what the cities will allow. We want the environs around our campus to be a place where Chesapeake employees and other city residents can enjoy being at. Beyond that, we just can't get too specific.”

[Pete]

Chesapeake, plaza tenants discuss their future together
By Steve Lackmeyer and Jack Money
Business Writers

You can chart the growth of Chesapeake Energy Corp. — the second-biggest publicly-owned company in Oklahoma — simply by watching its ever-expanding campus in northwest Oklahoma City.

The company's home when it was founded in 1989 was a single 6,000-square-foot office building holding fewer than 10 employees. Today, after a decade of expanding, its main campus covers 50 landscaped acres consisting of dozens of Georgian-style office buildings. Several more are under construction.

Contractors also are moving dirt on a planned retail development known as "Classen Curve” — a stretch along the east side of Classen Boulevard, west of Grand Boulevard across from where the Belle Isle power plant once was located.

And corporate officials recently met with tenants of Nichols Hills Plaza, which the company also owns, to discuss redevelopment plans for that commercial development. But there have been growing pains along the way.

Some came to light recently during that Nichols Hills meeting and during a recent Oklahoma City Planning Commission meeting where the company sought to close a street east of its campus so it could build a day care for children of its employees.

Henry Hood, senior vice president of land and legal for the company, admits its growth doesn't always make nearby neighbors happy.

"We have been building our campus since 1998, and during that time, we have dealt with a lot of neighboring property owners,” Hood said.

"Some, we dealt with because we sought to buy their properties. Others we have dealt with have just been curious about our plans. Everyone concerned with what we are doing has brought their own interests to the table.”

Neighbor complaints are abundant
During that late-April planning commission meeting, residents lined up to voice their displeasure about the company and its continuing construction.

Susan Cooper, 6001 N Shartel, complained contractors building the Chesapeake campus had run over her mailbox.

Judy Jantz, 816 NW 62, complained about crumbling streets, clogged storm drains and dirt from the construction sites that constantly ends up on her property.

The Rev. Robert Ward, 816 NW 59, complained about heavy trucks passing his home at 15 mph — fast enough, he said, to make his driveway vibrate.

"It's disrespect,” Ward told commissioners.

Company officials responded that Chesapeake has tried to address neighbors' concerns by redirecting lights glaring at homes, by power-washing Jantz' house and doing a weekly sweep of streets used by contractors.

Tenants of the Nichols Hills Shopping Plaza have been dealing with rumors about what will happen to the mall ever since they found out that Chesapeake had acquired the property in late 2005.

But at an April meeting, merchants met with Chesapeake officials, including chairman and chief executive Aubrey McClendon, where they learned the plaza will be rebuilt in phases.

Holly LaRue, an employee at Palm Place Salon who was asked by its owner to represent the shop at the meeting, said she was happy to finally be able to meet with Chesapeake officials to hear their plans for the property.

"He (McClendon) pretty much lined it out, what he knows,” said LaRue, who was informed the southwest corner of the plaza where the salon is located will likely be razed in 2010.

Merchants at the meeting said the company also revealed its plans to build housing, more offices and a hotel in the area, and indicated it may seek to remove Avondale Drive if it can acquire Nichols Hills' city offices.

Nichols Hills' Town Hall Relocation Committee recommended in May to move the community's town hall into a church building to make way for Chesapeake's growth.

The committee wants the council to accept an offer from Chesapeake to swap Christian Scientist Church, 1203 Sherwood Lane, which it owns, for the public-owned building at 6407 Avondale Drive.

Nichols Hills Councilman John Lippert said Thursday the next step is for Nichols Hills' planning commission to review the report and make a recommendation to the council.

However, a planning commission hearing on the report has not yet been scheduled, he said.

Remaining in the neighborhood
Nichols Hills Plaza Style Shop owner Jerry Jones came away from the meeting impressed that the area's future will only get better.

"I think they want increased business for everybody here,” Jones said. "I was glad he (McClendon) held the meeting.

"There are so many rumors out here. It's nice when what you're hearing is coming from the man himself.”

Jones said he walked away with two distinct impressions — that McClendon is committed to improving the area, and "this is all fluid.”

Hood said Nichols Hills Plaza tenants will not have to move for at least two years. He added redevelopment of the shopping center is also not yet certain — but whatever the company does, it will improve the overall area.

"Our goal is to create a good working and living environment around our campus, not only for our employees, but for other people who live in the area,” Hood said. "That is something that benefits the community as well.

"But the bottom line is, Chesapeake wants to be a good neighbor. We are going to be here for a long time.”

[wsucougz]

Not a whole lot of new meat in there.

[Pete]

As predicted, the OKC planning commission, surrounding residents and existing tenants are all starting to lose their patience.

I think CHK will continue to be evasive until someone refuses them something they want; like a rezoning permit or street closure.

[OKCTalker]

Drivers, too. I'm getting awfully tired of lane closures on the 63rd Street curve between Western & Classen.

[solitude]

As predicted, the OKC planning commission, surrounding residents and existing tenants are all starting to lose their patience.

I think CHK will continue to be evasive until someone refuses them something they want; like a rezoning permit or street closure.

I agree, Pete. It's getting close to blatant corporate arrogance; an attitude that they will play by the rules on their own time. It will take, as you said, a blunt refusal for something they want to wake them up.

I thought this was telling: "We've repeatedly asked for communication,” commissioner Nick Gales said. "The Chesapeake people have flippantly said we're working on it, later, with a wink. I think that later is now. We need more information.”

[Pete]

As I've said before, I can understand CHK not wanting to unveil a broad master plan that shows some property they have yet to acquire strategically located. Really hampers the bargaining efforts. However, I think the cat is way out of the bag anyway. There isn't a property owner in that general vicinity that doesn't know of the big property grab and some of the huge prices paid. How else did the purchase price get in the millions for a couple of little gas stations? This is hardly a well-kept secret any more.

So, I don't see what CHK has to lose at this point. I think they are merely being coy because they're being allowed to be. Why tell if you don't have to?

I gua-ran-tee you they have a general master plan in mind and probably on paper somewhere. You don't spend the kind of money they have and so many man hours obtaining hundreds and hundreds of properties if you aren't going somewhere with all this.

And yes, I realize plans change and they may need more office space which means less housing, but then you merely update your plan as needed. Other developers do this constantly and hence the term 'master plan', not detailed plan. It's conceptual; meant to show general themes and intent.

And I think the better question is: Why are they so reluctant to put this all on the table? If everything is soooo much better for the community, why not share all this great news?

It's because they know they are going to be met with a certain amount of resistance, particularly from a lot of the people in Nichols Hills. But Hard Cheese, CHK. You can't expect to do major surgery on a huge section of an established area and not have to go through a community buy-in process.


I say it's time the planning commission digs in their heals and doesn't give them one more approval until they come forward with their general concepts, especially since they are now admitting they are likely raize big parts of NH Plaza and may even seek to close Avondale.

[Rover]

Why is it so hard to improve OKC. It seems like others don't want to invest money and improve, just want to veto anyone else. I for one am glad they are investing in a permanent home for Chesapeak and want to improve the area for the citizens and their employees.

Non progredi est regredi....and we have had way too much non progredi in OKC.

[securityinfo]

I gua-ran-tee you they have a general master plan in mind and probably on paper somewhere. You don't spend the kind of money they have and so many man hours obtaining hundreds and hundreds of properties if you aren't going somewhere with all thi


I say it's time the planning commission digs in their heals and doesn't give them one more approval until they come forward with their general concepts, especially since they are now admitting they are likely raize big parts of NH Plaza and may even seek to close Avondale.

At the previous Planning Commission meeting, the members seemed to be banging their shoes on the table, demanding that CHK produce a Master Plan, and that they were not inclined to give CHK anymore byes until such a plan was forthcoming.

This last Thursday, the Commission, without any debate, green lighted CHK's request to close a street (60th) so CHK could build their day care center. Methinks CHK has won the "war".

[OKCTalker]

The Kensington Apartments (6205 NW Grand) were bought by CHK in summer 2005 for $1.8 million. The demolition equipment was tearing them apart this afternoon when I drove past. I would have thought that they were going to rehab them into corporate housing. Any guesses on what they'll do with the land?