Monday, July 02, 2007

CSUB ends Towers Project

From the CSUB Website:

California State University, Bakersfield has ended negotiations with Crisp & Cole Real Estate for the development of a hotel, residential, restaurant, conference and retail facility that was to be located on the campus grounds, CSUB President Mitchell announced in a memo to the campus community today.

The memo, in its entirety, reads:

"I have kept you updated from time to time on the status of our proposed public-private partnerships. I am writing now to let you know we have ended our negotiations with Crisp and Cole Real Estate (now Crisp Real Estate) on an agreement for the development of a project which would have consisted of condominium, hotel, restaurant and retail components. The agreed-upon negotiation period began on January 30, 2007, and ended on June 15, 2007.

"While Crisp Real Estate worked hard to meet the University's requirements for this very innovative and ambitious project, they were unable to do so during the negotiation period. Those requirements were:

'By June 15, 2007, the University must receive, in letters addressed directly to the University from your principal partners: (1) confirmation of equity investments and/or financing sufficient to cover projected project costs estimated at $300 million-$400 million, (2) confirmation of an agreement with a hotel partner, and (3) confirmation of an agreement with a construction partner.'

"CSUB was given conceptual approval by the CSU Board of Trustees in January 2007 'for the development of residential, hotel, restaurant, parking and retail space on the California State University, Bakersfield campus.' Since that approval was not tied to having Crisp and Cole Real Estate as the development partner, the University can move forward with a project with all or some of those components without having to go back to the Trustees for conceptual approval.

"The component of the proposed project that would have been most directly beneficial to our academic mission from a program standpoint was the hotel and conference center. The condominiums had less direct program impact, but would have provided substantial long-term annual ground lease income. Within the coming months the University will issue a new RFP [request for proposal] for a public private partnership that would consist of a hotel and conference center.

"I will continue to keep you updated as we move forward."


Rob Dawg said...

Heads must roll.

Don't get me wrong. Nothing criminal implied. I've been a taxpayer to the UCW/CS system for decades. The people that showed such horrifc judgement on this issue need to do the right thing and step aside/down. That is enough. IF they decide they don't wish to remove themselves from my employ then I want it "explained" to them.

AnalysisGuy said...

Things just get sweeter every day!

PS - Went to two of the three auctions (Pax Past Auctions)on Saturday. Both homes sold for about $150/sf with only about a half dozen bidders.

The details are as follows:

15427 Anita Catrina Ct - Final Auction Bid = $360K
with the 10% to PAX total price = $396K or $148/sf.

Of course the biggest news on the Anita Catrina home is that PAX auctioned another one of the same street back in March for about $170/sf. So we've seen a pretty big drop just in the past 3 months.

The other home 4213 Crescent Rock Ln had a final auction bid of $289K w/ the 10% = $318K or $154/sf.

Additionally, after the auction I learned that the Mayfair homes (near the Crescent Rock address - actually at Harris and Old River) are now routinely selling for $125 - $135/sf.

Ichabod said...
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Bakersfield Bubble said...

Thanks AG!

subsonic22 said...

I guess the pre-approval letter from Crisp's mortgage company didn't suffice.

I don't think the banks that Crisp approached would have allowed him to finance this project with 100% financing like he did with his properties. I also don't think they bought his claim that he would be the project would be his primary residence.

Rob Dawg said...

Now that the project is officially an empty lot maybe it will be David's primary residence.

Radelow said...
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Radelow said...

Oops...typo in previous comment.

I work in development in San Diego and can't understand how the school system even agreed to proceed on any negotiation with a 25-27 year old kid and partner who's only real experience in Real Estate was selling houses... Seems ridiculous in the first place to me.

xs10shell said...

radelow: sometimes things like quarter-million dollar contributions to the president's pet goal (sports standing) and having some type of at least business relationship with a long time and well respected campus supporter who also happened to be awarded 1 of the 3 projects can be very helpful. Esp. when you have just worked together on business construction on the other side of the campus. Then you couple that with the illusion of one of the city's highest profile, highest flying, appears to be best and brightest and youthful driving forces - tempered of course with the wise and knowledgeable senior partner who has an education background, bound to appeal to University types. You're right, their experience is in SALES. Finally, you have a relatively new CSUB president who came from Berkeley only 3 years ago and is still figuring out the Central Valley and the real players. He's just as eager to make his mark and conceptually, the towers project looked like it will do just that for him. I don't know how active the full CSU system board is or if they just approve everything their local campuses support

Raynor said...

Horace Mitchell suffers from the Optometrist's Disease.

It's all "I" with him. I've listened to him speak. Even up North.

He is rapidly changing CSUB from CSU Hispanco under Arcinega to CSU Africano.

No one falls harder for bullsh*t than the bull.........