Wednesday, July 25, 2012

Harbor Walk Lease Extension Denied

"As you are aware, the financial markets have not yet opened for projects like Phase I of Harbor Walk and we do not have access to funding for Phase I at this time."

That was the opening line in a recent letter to the Pearl River Valley Water Supply District from John Burwell with Harbor Walk.  The letter went on to request a one year extension for lease options coming due in June.  The same extensions were requested in 2010 and 2011.

The extensions were granted in previous years but denied this year.
Instead, the board granted a 30 day extension for the option and agreed to take up the matter in July.

The extension came up in the July Shoreline Committee meeting but the committee took no action on the request - that inaction meant the full board would not take up the extension and the deadline to exercise the option was left at July 31, 2012.    

Harbor Walk now has to exercise the lease option by July 31, 2012 or it expires.

Some History
The original Harbor Walk lease required that a portion of the development be leased at the commencement of the master lease on July 2004 - other parcels would be leased in a series of steps, called take downs, in future years.

In 2010 one of those take downs came due and Harbor Walk asked the PRVWSD for an extension.  The board granted the request and Harbor Walk paid approximately $25,000 for the extension.  In 2011 they came back to the board asking for another one year extension - the board granted that request and Harbor Walk paid $55,000 for the extension.

Now What
We'll have to wait till July 31rst to see if Harbor Walk exercises the option. However, the development still has a sizable portion of property under lease and that is unchanged.

Harbor Walk currently pays the PRVWSD about $600,000 a year in lease fees.

A copy of Mr. Burwell's letter is available HERE.

Copy of PRVWSD June board minutes HERE.
The Rez News


Anonymous said...

I've been waiting to see how they handle this... Thanks for keeping us informed, TRN!!!!

Anonymous said...

Grant the extension and continue to collect the $600K.

Oh...and let me know when "the financial markets open for projects like Phase I of Harbor Walk."

Anonymous said...

10:47 - or let someone else have a go at a more realistic development and possibly bump that $600K much higher...

Anonymous said...

I have a Dream that when Harbor Walk is complete I will be able to ride my Unicorn there to shop. When finished at Harbor Walk I ride my space ship to the Indoor Area in Jackson and then complete the night on Farish Street At BB Kings - Then I wake up!!!!

Anonymous said...

While I'm disappointed that the plans aren't coming to fruition, if this fella is willing to continue leasing the property and there are no other parties interested in developing the parcel, I say extend the lease. Otherwise it's generating no income what so ever. What am I missing here?

Anonymous said...

I think the only way to get another interested party in the fold is to let the lease expire, then the Board can put out a RFP and then we will see some interested parties show up, in my estimation.

Anonymous said...

It seems obvious that there isn't a great demand for development, else he would move ahead.

Anonymous said...

He's trying to build a "wine resort" in a bud lite budget area. All of the financiers know not to invest in such foolishness... But he has a dream.

Anonymous said...

So let's see how this plays out - The brainiacs at the PRV turn down $65000 - for an 11 month extension - the option expires under its own terms in 2014 - the land already leased is tied up for the next 54 years - but IF the PRV does not get a bid WHO will lose their job? In the mean time the only RFP they can put out must at least be equal to what MHD had already signed on for or I smell a lawsuit (major variety) !