Ozark sends third Finley River request for proposal

Five years after creating a plan, the Ozark Land Clearance for Redevelopment Authority is still looking for companies interested in working on the city's downtown redevelopment project. The city hopes its third request is the charm.

At its Feb. 11 meeting, the LCRA board asked city staff to circulate a third request for proposals, looking for development proposals for the 47-acre Finley River Neighborhood Redevelopment District.

The city and the redevelopment authority will remain as the master developer for the project, with other companies joining as subdevelopers adhering to the master plan the city approved for the district in 2007. That plan calls for a combination of retail, restaurant and residential uses in the district.

"I know it is tough out there in the development community and the rules of
how banks finance projects have changed," City Administrator Steve Childers said via e-mail. "However, we know there are those out there that are still interested and capable of making projects like this happen, and we plan on finding them."  

The current request will bring in a third developer to work with the city on the project, which has been seeking developers since 2005.

The original developer, Hagerman New Urbanism, worked with the city for nearly three years putting together the development plan, but the two parted ways over the developer's ability to obtain financing. Hagerman later sued the city for the cost of its work on the project, and the city settled the suit for more than $850,000.

Michigan-based Plazacorp Realty Advisors Inc. was then chosen to lead the development, with the city acting as master developer. Plazacorp, however, is also out of the project, Childers said, after the two sides couldn't agree on how much of the development cost should be covered by the city.

"It appeared that Plazacorp was either not willing or able to finance the project on its own," Childers said via e-mail. "Therefore, the city was asked to take on additional financial risk, and given the significant political and financial investment we had already made, we simply couldn't justify taking on any more."

The city has set a 2 p.m. deadline March 5 for proposals; the request for proposal is available at the city's Web site.