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  The developer for the Symmes project has asked for more time as it tries to secure construction financing, the and Redevelopment Board appeared to be running out of patience as it moved to ask its attorney how to proceed. JPI, the developer, faced a March deadline for financing, and an extension was granted until the end of July. A further extension until the end of August was approved.
July 28 Redevelopment Board minutes
On Sept. 15, at its regularly scheduled meeting, the board heard an update from Douglas Manz, a vice president from JPI Group, who asked for more time. The board did not grant the request. After discussing finding the developer in default, Chris Loreti, board vice chairman, moved to ask for guidance from outside counsel about the options available under the Symmes Land Disposition Agreement, and the board agreed. The primary reason for the delays relates to the financing of the project.
Manz attended the meeting in part to reassure board members and citizens that the project will continue as planned, despite the delays.
Typically, he said, JPI borrows 75 percent of the expenses of its projects and self-funds the rest. Manz said that the construction lender retained by JPI would fund only 60 percent. Thus, JPI has spent several months raising other capital before proceeding. He did not identify the lender.
Manz said that, in addition to the 60 percent funding from its construction lender, JPI obtained 15 percent funding from what described as mezzanine lender, which was also not identified. Such financing is described here >>
In addition to the delays because of the need to seek additional capital, Manz indicated that investors are screening companies more intensely before funding them, a reaction to the ongoing economic turndown nationwide. He indicated the JPI project has been fully vetted, and those involved are ready to move toward closing the deal for funding.
Manz did not provide the board with a date for closing.
JPI has applied for the proper permits to begin building on the site, and the town building inspector is reportedly ready to grant them, but the inspector awaits payment.
Manz indicated that they will secure the permits once the funding comes through. While waiting, work at Symmes has slowed considerably.
Board Vice Chairman Chris Loreti questioned Manz about the repeated delays in the process. He noted that the town has twice granted an extension to JPI to meet the timeline for obtaining the building permits and indicated that the board would now have the option to find JPI in default on the project.
Once JPI is notified that it is in default, it would have 60 days to cure the default before the board could take further action.
Manz indicated that a finding of default would make future funding more difficult for JPI to obtain and urged to board to maintain the cooperative relationship that it has.
Loreti then moved no action, which does not grant JPI another extension, as Manz sought, but also falls short of finding JPI in default, the more serious possible action.
Board member Bruce Fitzsimmons questioned whether such a decision could set a precedent that would prevent the board from ever holding JPI in default.
He settled the concern by making a motion, seconded by board member Roland "Roly" Chaput, and passed unanimously, to have the board's attorney draft a letter to JPI stating that while the board currently continues to consider JPI in compliance with the Land Disposition Agreement, it retains its right to find JPI in default at any point in the future, and that the vote to take no action is not to be construed to waive any rights by the board or town in the future.
The board is scheduled to meet Monday, Sept. 22, to see what steps to take next after members hear from the board's attorney.
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Bob Sprague contributed to this report.
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