The City of Fort Wayne has dropped a developer set to work on the riverfront mixed-use project, citing the company could not meet requirements in the agreement.
In late 2017, Continental Property Group and the city announced plans to bring a $61.7 million seven-story development at on the riverfront at Harrison and Superior streets across from Promenade Park. The private project called for about 150 apartments, retail space and a parking garage.
On Monday, the city announced it was seeking a new developer in the project. City officials said CPG could not meet the financial commitments in the contract.
“The City has met all the terms and conditions of the economic development agreement but unfortunately CPG seems unable to meet their commitments,” said Nancy Townsend, executive director of the Fort Wayne Redevelopment Commission.
CPG, based in Minnesota, is called one of the largest and oldest developers in the Midwest. The group sent the following statement to WANE 15 Monday:
We are surprised and disappointed at this announcement. We had no warning or notice that it was forthcoming. Indeed, we have invested millions including over $500,000 in the last thirty days and the project is ready for permitting. We have established and invested millions in an opportunity fund to own the project. We have spent nearly $1,000,000 with local professionals in an effort to produce an economically viable project. Since its inception the project has seen nine interest rate hikes and a reluctant local financing market. We have overcome nearly all of those obstacles, but a few remain. We were working in earnest with the City to resolve those remaining issues and are extremely disheartened by the action taken by the City. We remain interested in and capable of completing the project. We believe in Ft Wayne and hope to re-engage the City in a productive discussion that results in the completion of this transformative project.
-Continental Property Group
City officials said the project and funding commitments defined in the agreement will not move forward. Now, they’re taking new requests from any developers, including CPG.
“I have already heard from other developers who are interested in the site and I look forward to talking with them about creating a project that will be a great asset to our community,” Townsend said.
The first portion of the riverfront project, Promenade Park, is set to open June 21.