Amid increasingly grim economic news, it's not surprising to hear that the developers of a highly anticipated redevelopment project on Portsmouth's riverfront are having trouble securing financing.
Early this year, city officials approved a deal with the Dallas-based Lincoln Property Co. to raze an aging Holiday Inn on city-owned property downtown and replace it with a $158 million showcase project featuring about 450 residential units, a mix of commercial space and two parking garages.
City officials, who've committed $14 million worth of grants and infrastructure improvements to the project, expect the development to generate $29 million in revenue over the next 10 years and encourage further revitalization downtown and citywide.
In June, however, the developers asked for and received the city's permission to extend a deadline for submitting more detailed plans for the project. A sluggish economy was forcing lenders to slow approval of financing for new projects.
The nation's financial picture has grown considerably worse since then, of course. Kathy Warren, director for development for the Portsmouth Redevelopment and Housing Authority, told The Pilot's Jen McCaffery last week that financing remains an obstacle for Lincoln. Company representatives are expected to give the city an update next month.
City officials, meanwhile, are looking at ways to help jump-start the project, including creating a special taxing district for owners and tenants in the development.
If that funding mechanism can truly make a difference in getting the project going, it's worth exploring. But Portsmouth can't afford to invest any more tax dollars in the project, no matter how promising the development might be.
The city and its residents also can't afford to lower their standards and accept a lesser project, as Warren, Vice Mayor Bill Moody and others point out. "We have one opportunity to do this," Warren said. "This property is a jewel."
Portsmouth has undergone a major resurgence in recent years, with new development and renovations restoring life to the city's historic downtown and several long-struggling neighborhoods. It's sad to see that progress stalled.
But the economy, sooner or later, will improve. Portsmouth officials would be wise to wait for that recovery rather than lower their expectations for the riverfront and risk undermining the gains they've made.
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There's plenty of financing $$'s available,
Just check into the $$'s that Auntie Louise is trying to keep all for herself. How about using those low interest rate $$'s for this project instead of for Victory crossing. Noone wants to go to Victory Crossing in the middle of Cavalier Manor. And, drawing more people to downtown will bring in more business there & benefit all, not just Auntie Louise. Why aren't we looking @ all the options & not using those funds. Oh that's right, they're just for Auntie. Time to fess up city council, you know you're in her hip pocket & it's time for that to stop. Use those funds for worthy projects like this, not just for a bunch of soriety sisters to have a place to eat a meal & stay overnight.