by Luci Scott - Jul. 18, 2008 06:32 AM
The Arizona Republic
Chandler now has two commercial projects where construction has stopped: the Chandler Piazza mixed-use development on Frye Road east of Loop 101 and the better-known Elevation Chandler high-rise next to the mall.
People driving by these abandoned sites can't help but wonder what the city's role is in scrutinizing developers more closely before projects are approved.
However, experts say as long as development projects are privately financed, cities lack the authority to demand financial details.
If there is some sort of public component like a partnership with the city or an economic development incentive that gives a city a stake, "then absolutely, there would be the due diligence in terms of making sure there were enough financial resources available to do the project," said Ken Strobeck, executive director of the League of Arizona Cities and Towns.
But if it's a private development, such as Elevation or Piazza, the city can only regulate zoning, issue building permits and perform inspections.
"We don't have any authority at all to go in and say, 'Show us your balance sheet before you begin this project,' " Strobeck said.
Chandler Piazza is planned as an 18-acre mixed-use project at Frye Road and Ellis Street. Work stopped there in May.
The developer, E.J. Pospisil, CEO of Scottsdale-based Momentum Commercial Real Estate, said in June he was reorganizing the financing. He blamed a slow leasing market for the work stoppage.
Doug Ballard, Chandler's director of planning and development, said he is especially concerned about Chandler Piazza because particleboard used for the walls is exposed to the elements and won't last long without deteriorating.
Elevation Chandler was planned as a high-rise hotel topped by luxury condominiums. Work stopped there in April 2005 and developer Jeff Cline has had a series of financial problems since. The project is in bankruptcy but has a potential buyer.
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