Wednesday, September 6, 2017
Update on the Cathedral Campus Redevelopment Project
The managers of the Nutmeg & Olive LLC expect to see a draft text of the sixth amendment to the Purchase & Sale Agreement between the LLC and Greystar this week. Progress on this version of the agreement has been slower than expected, partially due to the Summer vacation schedules of key players in revising the agreement. Our consultant, Tom Delaney, has reported weekly to the LLC throughout this period. He, along with our attorney, Bob Frances, are doing the heavy lifting in ensuring that the eventual Purchase & Sale Agreement will benefit us.
The structure, as currently proposed, will consist of twenty stories of various-sized apartments, with program and office space owned by the Cathedral on the first and second floors. Greystar plans to build the requisite affordable housing unit on site rather than contributing to the city’s affordable housing fund. We are pleased with the decision to build the affordable units on site.
As those of you who went to meetings with the LLC to urge local planning groups, including the San Diego City Council, to approve our development plans will remember, the height of our proposed development was among the key concerns voiced at that time. Greystar believes that the development climate has changed in the past six years, and that the city is now keen on in-fill and higher density construction. This is especially true when affordable housing will be an integral part of a proposed development. Therefore, they believe the city will approve their new proposal for increased height, square footage and density. Greystar hopes to move forward with a submittal of the current plans to the city on September 15, 2017, assuming that the LLC is in agreement with the details, including design, that are subject to their approval.
The most significant result this Summer of the negotiation process has been the agreement that the land sale price will be increased on a pro rata basis per additional square foot approved above the current total square footage for which we hold an entitlement. This will allow us to recoup a price concession we made when the developer was seeking financing and a much smaller structure was envisioned.
Because of the developer’s need to go back to the city for approval of a project significantly larger than the one for which we obtained entitlements in 2011, the project timeline has been somewhat extended. We now anticipate that construction will begin during the second half of 2018.
We hope to be able to share the proposed design of this structure with the congregation during the Forum at 9:00 a.m., on Sunday, October 8th, when an update on the CCRP and the Olive St. project will be presented. I hope that you can attend this meeting, where you will have a full presentation of the project status.
As ever, thank you for your patient support of the LLC during this lengthy process; it is appreciated. If you have questions about the project at any time, please direct them to me, or one of the other LLC managers: Dean Penny Bridges, Ken Tranbarger, Jack Lentz and Kendall Squires.
LLC Manager and Dean’s Warden
September 4, 2017