Harrison developers meet another deadline

FORT WAYNE, Ind. (WANE) - In June, Barry Real Estate CEO Chris Schoen announced a new timetable for the final stage of downtown Fort Wayne's Harrison Square project.  The building's financing was to be finalized by August 31.  The deadline's a nonbinding agreement that's supposed to help get construction started as soon as possible.  Wednesday afternoon, developers avoided missing another deadline.

In its letter to Mayor Henry, New Harrison LLC wrote, "We expect to be in a position to provide evidence of our ability to proceed with our financing later today and a definitive agreement and a definitive agreement with the City by the end of the week."

Tim Haffner with the Fort Wayne Corporation Council said the city received proof that developers reached a financing agreement with PNC Bank.  The parties involved will be reviewing the committment to lend and hope to have a definitive agreement by the end of next week.

"It's a big step a lot of work. The Mayor provided a lot of encouragement and guidance throughout the process and today represents the culmination of that effort,” Haffner said.

Earlier developer Simon Dragan, the President of Whitley Manufacturing, released this in a letter to Mayor Tom Henry. "We understand the importance of this project to the community and are doing everything possible to bring this process to a successful conclusion."

There are still potentialy some road blocks. One would be if the Redevelopment Commission decides not to approve the agreement. But attorney Tim Haffner says he doesn't think that will happen.

"It would be our hope that they would then act and approve it and once they do I think the developers will know that the redevelopment has approved the transaction we would have a definitive agreement in place then it's a matter of implementing the financing set forth in the commitment letter."

If things do fall through the city and its citizens won't lose any money they've already put into The Harrison project.

"We still have in place the January settlement agreement with Barry Real Estate and Hardball Capital that would compensate the city and the citizens for the cost and expenses we've incurred in the past number of months."

Haffner tells NewsChannel 15 he's very confident nothing will fall through. The loan document looks like any other and believes the agreement has a good chance of getting approved by the Redevelopment Commission. They meet for a vote on the 12th.


The multi-purpose building is scheduled to have apartments, offices, and businesses like O’Reilly’s Irish pub. It's been a roller coaster ride for the Harrison project. The project was supposed to be completed in June of 2009, but has been met with a slew of delays.

 

NewsChannel 15 has constructed a timeline of the Harrison developments so far in 2011:

 

Jan. 7- Scotty’s Brewhouse backs out as a tenant.

Jan. 12-Special meeting on Harrison delayed. Not enough signatures from banks supposed to finance project.

Jan. 26-Mayor Henry announces PNC as lead bank in State of City address . PNC to fund the 18 million dollar project.

Jan. 27-Fort Wayne Redevelopment Commission approved protection from the developer. It would get $2.5 million over a period of time if Barry Real Estate fails to complete the project.

Feb. 3-Snow storm delays Barry’s big announcement

Feb. 14-Barry makes big announcement on Harrison tenants . Henry proclaims “Harrison is a go!” O’Reilly’s Irish Bar, Three Rivers Federal Credit Union, and Carson Boxberger Attorneys announced as tenants. Groundbreaking set for May 1, 2011.

May 1-No groundbreaking. City “not available” to talk about Harrison project.

May 9-Henry demands status report from Barry Real estate by the end of May.

May 10-Barry responds saying the project is complex. Promised update by the end of May.

May 31-No update. City allows Barry to update later in June.

June 13- Barry gives a project update . The Hagerman Group and Whitley Manufacturing Co. are announced as new investors with Barry. The final financing deadline pushed back to August 31, 2011. Construction is pushed back to November 30, 2011. The project is scheduled to be finished March 1, 2013.

June 14-City Councilman John Shoaff called for the city to look for a different developer, saying Barry was in “default”

July 11-Hardball Capitol makes first $50,000 payment to Fort Wayne’s Redevelopment Commission. It committed to do the same every year.

July 28- Blueprints for the Harrison released early.

Aug. 31-Developers said to have reached agreement with PNC and provide commitment to lend