CSUB ends negotiations on projectJuly 2, 2007
Kathy Miller, 661/654-2456, firstname.lastname@example.org or
Michele Newel, 661/654-2720, email@example.com
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."