Construction deadline was Nov. 3, 2008
PETOSKEY -- After Petoskey Pointe developers failed to meet their construction deadline, the Petoskey city council voted Monday to issue a notice of default.
November 3, 2008 was the date given four years ago to when the $60 million luxury condo and hotel complex was to be completed. However, more than a year ago the development firm behind the project, Lake Street Petoskey Associates LLC, lost their financing. Since then, all work on the development has stopped and a massive hole has remained at the entrance to the city.
"Currently we have received a request for an extension from the developers, and that happened at the last public meeting," said Mayor Dale Meyer of Petoskey. "We currently are in negotiations and discussions with our attorney as far as how we proceed from here. I'm sure there will be additional conditions attached to the development agreement."
The development agreement Meyer is referring to is the one the city made four years ago with Petoskey Pointe developers. The city agreed to give up land to Lake Street Petoskey Associates LLC in exchange for a $970,000 credit towards the purchase of parking space in Petoskey Pointe.
At last week's city council meeting David Jankowski, a partner with LSPA, told the council he was confident the firm had secured a new commitment for financing.
Then, on the night of the deadline, after a brief re-introduction to the agenda item, the Petoskey city council moved into a two hour closed session meeting.
"The closed session is primarily to discuss written legal opinion by our special legal council concerning the development agreement," Meyer said.
When asked what options the city has moving forward, Meyer said: "Certainly there have been a number of them that have been discussed, they haven't been decided upon, so it will be a little premature for me to discuss that."
However, following Monday night's closed session meeting the city council revealed they will continue discussion on the project at a special meeting on Monday, November 10.
Meyer says he expects the council to make a decision on the city's next step of action at their next regularly scheduled meeting on Monday, November 17, 2008.
All city council meetings are held at 7:30 p.m. at Petoskey City Hall, 101 East Lake Street.
