Huge blow to Deep Deuce

[Patrick]

By the way, for those that may have forgotten, here are the 3 original proposals:

1. The Hill at Bricktown
Number of units: 141.

Development team: Oklahoma City historic preservationist Marva Ellard; William Canfield, founder of Novazyme Pharmaceuticals, oilman and contractor Steve Clark; Humphreys and Planners Architects.

Financing: Development team equity.

Investment: $34.4 million.

Land purchase offer: $2,003,800.

Public financing: $4 million Tax Increment Financing.

Average rent or sale price: $275,000 (sale).

Retail: None.

--------------
2. Ellison Park at the Hill

Number of units: 272.

Development team: Bert Belanger, former vice president of ERC Properties and developer of the Breighton Apartments in Paseo; Anthony McDermid, principal of TAParchitecture; and William "Pat" Garrett, president of Gulf Exploration and director of Heartland Homes.

Financing: Trammell Crow.

Investment: $39 million.

Land purchase offer: $1,306,800.

Public financing: Reinvestment of land purchase funds back into project.

Average rent or sale price: $1.15 per square foot for lofts, $249,375 for town home sales.

Retail: Ground floor retail.
------------------

3. Alta Bricktown

Number of units: 300.

Development team: Wood Partners; Architectural Design Group.

Financing: Westplan Investors.

Investment: $22 million.

Land purchase offer: $1.5 million.

Public financing: None.

Average rent or sale price: 93 cents per square foot.

Retail: None.

[downtownguy]

Visit my site

[Patrick]

Hmmm...interesting...I think I'll post it here and comment more. We're all geting onto Fred Jones Hall and Jim Tolbert and they actually voted in our favor! lol!

[Patrick]

From downtownguy at www.downtownguy.blogspot.com:

"Unhappy about the Hill

They’re angry over at www.okctalk.com. They are very angry. They are even suggesting that a Moshe Tal type legal offensive be launched over yet another Urban Renewal project.

What don’t they like?

They don’t like that the Urban Renewal commissioners chose a proposal for the hottest downtown patch of land - the Deep Deuce "hill" - that didn’t match up to the request for proposals. They don’t like what they perceive to be a lesser project chosen over one they think is much more creative. They don't like what appears to them to be a second chance given to William Canfield to elminate a request in his proposal to use $4 million in tax increment financing to match his competitor's proposal of not using any public assistance.

They don’t like how local newspapers covered the selection. They don’t like what they perceive to be an all powerful, unquestionable position taken by Urban Renewal commissioners.

Here’s the story that’s not being told:

Urban Renewal, by its very nature, is set up to be led by the city’s most powerful figures, men and women (though the board has yet to have a female commissioner) who are chosen to lead boldly, put what they think is best for the city’s redevelopment over popular vote or public pressure.

But they’re also men who have ties. Lots of them. Enough to fulfill any conspiracy theorist’s worst delusion. They’re also a group that always casts a unanimous vote in selecting a developer for a major project.

Untold story No. 1: The hill vote made history. The commissioners split on this vote. Stanton Young, with his long involvement with the Presbyterian Health Foundation, sided with William Canfield’s proposal. Canfield has been and continues to be a major player in the PHF research park. Do we really want to discourage Canfield from pursuing opportunities to invest his money downtown? I wouldn’t think so. And do we really want Young and the PHF to withdraw their efforts to create a bio-research center on the east fringe of downtown? Probably not. These ties are no secret among downtown players, certainly not to competing developers like architect Anthony McDermid.

But here’s where all this friendliness gets a bit tricky. Let’s examine a portion of the Journal Record article that got the chat board so enraged:

Further drama slowed the decision-making process. As the 10 a.m. meeting began, Commissioner Jim Tolbert had not yet arrived and the committee was eager to select a winner. The committee skipped the item on the agenda and proceeded with other matters. By 10:24, Commissioner Fred Hall became antsy, concerned about his other commitments.

Discussion regarding the two remaining teams ensued, with each team claiming they would be the better selection. A minute later, Chairman Stanton Young announced Commissioner Tolbert's presence in Ronald J. Norick Downtown Library, where the meeting was held. As he headed to the fourth-floor room, several Urban Renewal members stated their opinions. By 10:26, Tolbert was in his seat. Less than 15 minutes later, a decision had been made.


The committee skipped the item on the agenda and proceeded with other matters. By 10:24, Commissioner Fred Hall became antsy, concerned about his other commitments.

Discussion regarding the two remaining teams ensued, with each team claiming they would be the better selection. A minute later, Chairman Stanton Young announced Commissioner Tolbert's presence in Ronald J. Norick Downtown Library, where the meeting was held. As he headed to the fourth-floor room, several Urban Renewal members stated their opinions. By 10:26, Tolbert was in his seat. Less than 15 minutes later, a decision had been made.

As the decision was announced, straight faces engulfed the room. Little emotion broke through. Members of The Hill at Bricktown sat still. Within moments, Walnut Hill members cleared the room.

"We were not notified by OCURA that they were willing to consider economic changes to the proposal at the 11th hour," said Shaun Frankfurt, managing director of Trammell Crow Co. and a member of Walnut Hill. "If changes during the 11th hour are going to be considered, both competing teams should be given notice and equal opportunity to revise their offer.

"Trammell Crow and High Street Residential are extremely disappointed by the decision of the Urban Renewal Authority," Frankfurt said.

Bullard said last-minute changes should not be allowed to happen again. He said that on this occasion, nothing in the rules specifically prohibited late changes, but both teams should be required to follow the same rules and the voting commissioners should have ample time to review material before a decision is made.

Clearly, the Canfield team won with a last minute trick shot. But is that evidence of a corrupted process, or simply a sign that his team played the game just a bit better than McDermid?

Last minute efforts to change proposals aren’t new. It was tried, unsuccessfully, by a team wanting to redevelop the Skirvin Hotel. Oh, and let’s consider this: Moshe Tal tried the same thing when he tried to win south Bricktown by adding Baltimore developer David Cordish’s name to his proposal.

Now, let’s get back to Deep Deuce and the hill. Canfield must have known he had a problem when the proposals were unsealed. His proposal didn’t meet the minimum number of units set out by the request for proposals, and he was asking for $4 million in tax increment financing. No such assistance was being asked for by McDermid’s group. And McDermid’s proposal seemed to match the request for proposals.

But McDermid had an unpopular partner: Bert Belanger, who attracted enemies during his time working for low-income housing building ERC. And Belanger and McDermid’s big pitch for a Bricktown upscale housing tower called “The Factory” a couple years earlier was just that – a pitch. It gathered a lot of press, but nothing ever happened. So this pair, in some minds, had a credibility problem. And their new pitch for “the Triangle” town square a day before the proposals for the hill were sent in might have backfired.

So what did McDermid do? He added Trammell Crowe just before the presentations. Not exactly the 11th hour… but clearly, it was after junior’s bedtime.

Stanton Young, Russell Perry and Larry Nichols voted for the Canfield project. Fred Jones Hall and Jim Tolbert voted against it, and for McDermid. Find another time in the last 30 years when the urban renewal commissioners split on something like this.

I question whether filing a lawsuit is the best response in a matter like this. After all, the board is charged with using their judgment to decide these matters. As for them being unaccountable, that’s not quite true. Each and every member is appointed by the mayor and have to be re-appointed at the end of their tenure. The city council has to give a majority approval to those appointments. So if you’re upset over this decision and live in Oklahoma City, ask yourself, did you vote in the last council or mayoral election? The numbers indicate that a lot of you did not.

So here's untold story No. 2: if you’re upset, and you didn’t vote, guess who the ultimate bad guy is in this controversy? Go get that mirror out...

Patrick, Midtown, etc., I don’t know whether you voted or not in your most recent elections, and this isn’t meant to be a blanket criticism of you or your feelings. If you did vote, you have options. Call your ward representative, call the mayor, show up at the next council meeting, sign up to speak at the end of the meeting. You can also ask the mayor’s office for a schedule on when the commissioners’ terms are up, and then appear at that council meeting to protest their reappointment if you feel they have not acted in the city’s interests.

- The Downtown Guy
www.downtownguy.blogspot.com"

[Patrick]

To be real honest with you, I overreacted when I said McDermid needs to file a lawsuit. I just personally think he was rooked out of this deal, when obviously he had the most ambitious plan for the site, that met all of OCURA's 3 criteria, something none of the other plans did.

But I guess the more ambitious plans on paper aren't always necessarily the plans that will come to fruition. Just look at Moshe Tal's plans. Obviously, Moshe had the best plans on paper, but he never proved to have the financial backing to make it happen.
I suppose McDermid's failed "Factory" pitch and the addition of Bert Belanger were enough to sway the OCURA commissioners' opinions.

In the end, I'll be curious to see whether or not McDermid will be successful with his Town Center concept. The success of this development will determine just how successful his Hill proposal might have been.

I'm not completely against Canfield's development plan. As lnog as they're multilevel townhomes and not a suburban gated community, I guess I'll be fine with that. Still, I think we missed out on a unique opportunity to combine rental and owned residential units, and retail. Retail is so drastically needed in Depp Deuce and Bricktown.

Again though, the promises made in ambitious proposals, don't always come to fruition. Just look at the Deep Deuce Apartments. Supposedly, the developer was going to redevelope several of the older structures for retail use. So far, I've seen no retail stores in Deep Deuce.

On another topic, personally, I don't think Canfield's involvement in the Research Park should've played a factor in this. If you want to play that card, McDermid is just as active in the Triangle/Flat Iron District, which actually may possibly be one of the greatest additions we've had to the downtown are in years. I think awarding a development bid to a group just because of their business ties is corrupt. I'm sick of the good ole boy tactics that exist in this city.

[quote=downtownguy]Do we really want to discourage Canfield from pursuing opportunities to invest his money downtown? [/quote}
Do we really want to discourage McDermid from pursuing opporuntities to invest his money downtown?

And do we really want Young and the PHF to withdraw their efforts to create a bio-research center on the east fringe of downtown?

I think this quote by itself proves that good ole boy tactics were involved in the selection process. We're simply giving Canfield an incentive to further his development of the research park. Is that really ethical? What ever happened to the idea that the man with the best proposal win? I question the connection between Young and Canfield, and in fact wonder if Young should have recused himself from this decision-making process.

Stanton Young, Russell Perry and Larry Nichols voted for the Canfield project. Fred Jones Hall and Jim Tolbert voted against it, and for McDermid. Find another time in the last 30 years when the urban renewal commissioners split on something like this.

I suppose this is somewhat comforting in light of our present feelings on the selection of Canfield.

So here's untold story No. 2: if you’re upset, and you didn’t vote, guess who the ultimate bad guy is in this controversy? Go get that mirror out...

I've actually voted in every city election since I've been 18! I voted for Mayor Cornett last time around and don't regret my decision. I also voted for Sam Bowman for Ward 2. Do I regret my decision voting for Sam Bowman? Absolutely. You'll see me voting for Susan Johnston (our very own Proactive Volunteer) next time around.

If you did vote, you have options. Call your ward representative, call the mayor, show up at the next council meeting, sign up to speak at the end of the meeting. You can also ask the mayor’s office for a schedule on when the commissioners’ terms are up, and then appear at that council meeting to protest their reappointment if you feel they have not acted in the city’s interests.

I've actually already completed several of these options. A lot of good that will do. The decision has been made, and our city leaders seem happy with our current OCURA officials.


I will say one thing again! I am quite impressed Fred Jones Hall voted for McDermid! I'm actually quite shocked!

[downtownguy]

I didn't intend to defend or attack the selection. And Patrick, I suspected you to be someone who does vote. My post was meant to reveal a bit of the behind the scenes info that hasn't gotten out. There is nothing I've seen that indicates Canfield has any more ability than McDermid to pull these projects off.

[Sooner&RiceGrad]

To those who quoted me word for word:

I did not say I agree with this decision. If you think so, read my journal here.

Anyway, I would like to see an upscale downtown. But gated?

I have some vivid thoughts here. But I will let Patrick do enough talking for both of us.

[metro]

metro, could you shed some light on where you got the idea this would be a gated community?

I thought I clarified in the first discussion about this but let me explain. In the original OCURA meeting that they were originally going to make the decision, Canfields group was poorly organized, asked for TIF funds, didnt sound or act confident on anything, used alot of could be's and maybes, didnt do any sound quality studies unlike the other two teams, stated they werent sure if it would end up being gated or not or have any public areas. Im surprised Fred Jones Hall voted against it, he definetely acted like he had his interests in this project and who knows, he still may? Anyhow, it was obviously still the worst decision of the three, the all rental proposal would have been much better than this, let alone McDermids. We all need to contact McDermid and let him know to keep fighting and definetely contact OCURA and let them know our outrage and disconfidence in them. Let them also know that they should preserve the heritage of the Deep Deuce area and not call it Bricktown, they are just trying to profit off the Bricktown name!

[Patrick]

I still don't understand how such a disorganized group can be selected for such a project. Same thing happened when Hogan was chosen. In all actuality, Moshe Tal had the most comprehensive presentation. Hogan's proposal was also a lot of maybes, as we found out later.....maye there will be an Edwards Theater, maybe a Sega Gameworks, maybe a Dick Carks.

Anyways, I expect a similar outcome from this decision. Canfiueld will probably just throw something together. Our city seems to favor poor planning. Except of course in the Skirvin solution.

[Pete]

As I stated earlier, why can't we at least get some sort of explanation as to what criteria was used by OCURA and how each proposal stacked up against it?

Seems like a reasonable request and one they shouldn't have any problem making public.

Until they do this, everything else is just conjecture on our part.

[Patrick]

It doesn't seem like OCURA is willing to release that information. metro and others, have you had any luck?

They set criteria at the beginning and McDermid's proposal seemed to fit that best.

Unfortunately, with any city project, there will always be good ole boy tactics at work, but at the same time, I'd say McDermid's failed Factory Development wasn't helping his case any.

[Pete]

Is OCURA not subject to the rules about open meetings for such public entities?

Typically, they have to publish minutes and make other information available when the public requests.

[metro]

aol keyword: flawed or shady

[Popsy]

I am new to this forum and not as well informed as most of you. I am not familiar with McDermid. Has he had any successful projects in OKC? Was the Factory officially canceled or is it still a possibility?

[metro]

as far as McDermid, to my knowledge he hasnt really done any residential or commercial investment projects. he is very well known however, a great man, and the principal at highly respected TAP architecture based here in downtown OKC

[Patrick]

The Factory may still occur but on a smaller scale. One thing we're failing to tell people here is that McDermid's company was only providing architectural design for the project. Rich McLain actually owns that tract of buildings, thus McLain was the one financing the project and the one to blame.

[metro]

Well Patrick, thats not entirely true, although McDermid was providing architectural services for the Ellison Park at Deep Deuce proposal, his company had an interest in an investment property company, Walnut Hill partners, so technically he does have financial interests. Despite this fact, bar none his proposal was the only one that met guidelines and by far the best

[Patrick]

Well Patrick, thats not entirely true, although McDermid was providing architectural services for the Ellison Park at Deep Deuce proposal, his company had an interest in an investment property company, Walnut Hill partners, so technically he does have financial interests. Despite this fact, bar none his proposal was the only one that met guidelines and by far the best

Actually my reference to him only providing architectural services was to the Factory Development, which was owned by Rich McLain. That's okay though.

Obviously, he would've had an investment in Ellison Park at Deep Deuce through Walnut Hill Partners. Walnut Hill Partners wasn't part of the Factory though.

[metro]

correct, just wanted to clarify for those not in the know

[righteousbros]

You are all right to be indignant. Check out the comments by anon (obviously learned in the facts) in the comments to downtown guy's commentary.

Before you hammer Fred Hall too much, realize that he voted for McDermid and the Good guys..

The real culprit is the old guy, Stanton Young... he manipulated the process from day one to get his crony Doctor "I R Now a Developer" Bill Canfield, no doubt a very rich scientist who owes much of his wealth to Young and his use of our tax dollars to start the HS Center...

Larry Nichols is a stand up guy but really blew it on this one when he cow-towed to Chairman Young's arm twisting

The real loser is OKC in the eyes of national developers like High Street/Trammell Crow, who was recruited into the race by McDermid's team and got slapped in the face, as the good ole boys voted in a novice doc ....

[Sooner&RiceGrad]

The Factory may still occur but on a smaller scale. One thing we're failing to tell people here is that McDermid's company was only providing architectural design for the project. Rich McLain actually owns that tract of buildings, thus McLain was the one financing the project and the one to blame.

That one is a damn shame. Too bad...

[metro]

Before you hammer Fred Hall too much, realize that he voted for McDermid and the Good guys..

Thanks for re-emphasizing the fact. Although I still think he is a shady character and helped persuade this issue, I'm glad he voted for the right development. In the original final choice meeting he flat out said he wasnt going to vote for them and made crude remarks thus I still think he had a part to play in it. We also corrected our previous accusations and made this clear that he did vote for the right decision. This was already pointed out

[Patrick]

The real loser is OKC in the eyes of national developers like High Street/Trammell Crow, who was recruited into the race by McDermid's team and got slapped in the face, as the good ole boys voted in a novice doc ....

Let us not forget that Trammell Crow wasn't added until late in the process. Because of that, I actually questioned their complete committment to the project.

It's actually quite similar to the trick Moshe Tal pulled several years ago when he added David Cordish late in the game.

[Pete]

Also, Trammel Crow operates as a series of localized partnerships.

My impression was that it was merely the local partner that was involved in the development, so I'm not sure how much TC and this individual were bringing to the table anyway.

Also, locally Trammel Crow deals almost exclusively in industrial type properties.

[righteousbros]

While I think we are in agreement that OCURA made a bad decision, I know more than a little bit about the details and I can tell you this

1- Downtown guy started the notion that TC was added late - they were in the deal from the beginning - they were recruited by McDermid's bunch precisely because OCURA had required REAL EXPERIENCE in mixed use development as part of the RFP. This was nothing like Moshe's trick - check out the TC website and click High Street Residential - while it is true that the local TC office has been mostly an industrial player, High Street was started by TC when Art Lomenick came to TC in the late 90s after leaving Post REIT, where he was the main player in developing most of really cool urban stuff in Dallas, including the State Thomas area just off McKinney... the W Hill's main and only mistake was that they didn't make this point clear enough .. to the public..... the OCURA staff and Board was well aware....Stanton was simply relentless in his arm-twisting on behalf of his pal, Doctor Canfield.......................if this were to have happened in any of the MAPs projects, someone would be facing indictment for bid-rigging.............

The only good news is this...... it ain't over til the fat lady sings..........TC/High Street has reportedly filed with OCURA an official complaint and request to reopen the hearing...

Lastly, the record reflects that Hall asked early tough questions about both proposals but ended up supporting the Walnut Hill Redev team's project. So did Tolbert. So did the PAID CONSULTANT HIRED BY OCURA, whose written recommendation categorically showed WHR had BY FAR THE STRONGER TEAM (BECAUSE OF LOMENICK) to assure the thing ACTUALLY GOT DONE and DONE RIGHT...............the Doctor's team is comprised of a smart and VERY rich scientist and a bunch of amateurs who between them have MAYBE BUILT A FEW TOWNHOMES..................hopefully, the MAYOR AND CITY COUNCIL, elected and thus truly accountable, will see that their appointees on OCURA (at least 3 of them) have ignored the facts and their own RFP criteria and GIVEN THIS DEAL TO A CRONY IN THE WORST SENSE OF THE WORD....