Rome is putting its West Third Street property back on the market after a proposal to build a $15-million mixed-use development fell through.
City Manager John Bennett said Monday that David Doss and Tom Hackett withdrew their $1.2-million offer to buy the 1.75-acre property, primarily because of economic conditions.
“They had a good plan and good intentions,” Bennett said. “They just weren’t able to make it work at this time.”
The duo put up $20,000 in earnest money earlier this year, after the November 2007 contract was extended a second time. Bennett said the city is keeping $5,000 under the terms of the memorandum of understanding.
Commissioner Kim Canada said the city’s Redevelopment Committee he chairs will meet soon to discuss other options for the property.
“We were excited about the deal. It was what we wanted to see there,” Mayor Wright Bagby Jr. said. “But I don’t think any of us foresaw this economic situation.”
The city is paying $1.825 million for three tracts housing Dempsey Auction Co., Mitchell Glass Co. and Just Sports & Tennis. The owners agreed to accept interest-only payments this year, while the Doss-Hackett deal was in play but added $50,000 to a balloon payment due in 2012.
The two acres combined with the adjacent recreation property it owns gives Rome control of 4.2 acres of riverfront land around the pedestrian bridge.
Also Monday, the board approved a rezoning request from William S. Davies Homeless Shelter that clears the way for construction of a new facility on Crane Street between East 18th and East 19th streets.
Daryl Scott, whose house abuts the property, voiced neighborhood concerns regarding the influx of transient strangers. But Shelter Director Allison Mitchell said the facility would be geared toward helping people become self-sufficient.
“We know who’s in our shelter and we have a relationship with them,” she said. “We have a program. It’s not just a flop house.”
Plans are for a 30-bed shelter for 15 men and 15 women. Mitchell said she is lining up volunteers to provide structured activities ranging from inspirational movies to classes about job skills, benefits and how to maintain a house.
“We have very firm, very fair rules,” founder Susan Seagraves said. “If they’re willing to work and want to get it together, this is the place … We try to keep the troublemakers and the riffraff out.”
Commissioners extracted a promise that the shelter’s board of directors will work with neighbors on a design to minimize the impact — and praised the success of the 5-year-old locally funded initiative.
“It’s a dynamite program …and it speaks volumes about this community,” Commissioner Jamie Doss said.
Commissioners also approved the use of condemnation proceedings against a slice of property owned by Larry Martin at the corner of Turner McCall Boulevard and North Fifth Avenue, although negotiations will continue.
The land is needed for a turn lane funded through the 2006 special purpose, local option sales tax.
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