Gary Chalupsky, the city's Director of Redevelopment and Economic Development, says that public support shown for the project during a three-hour public hearing, held during the council's regular monthly meeting, was some of the strongest support he's seen for the project yet. Members of the downtown business community and other citizens lined up to speak in favor of the project.

"It's not a major commercial project," Chalupsky says. "It's a major apartment project with some incidental commercial. One of the positive things about the project is there is no relocation of businesses involved, so it's not an issue. It's hard to find a project in a downtown area without some relocation involved."

Still, some opposition remains. At the hearing only one local property owner spoke of concerns regarding public parking availability for his building. Still, Chalupsky says there remains the possibility that a lawsuit will be filed, which would delay the developer from breaking ground any time soon.

In approving the project and its conditional use permit, the City Council directed staff to work on the remaining parking issues to resolve those problems. At present, the project is designed to have subterranean parking with 259 spaces on the below-grade level, and 168 spaces at grade level.

When completed the complex will feature one and two-bedroom units, ranging in size from 669 to 1,152 sf and rents starting at $1,160 a month. With only preliminary designs approved to this point, Chalupsky believes it will be anywhere from six to nine months before the project breaks ground, and 14 months before construction is completed some time in 2002.

Based in Houston, TX, with offices in San Diego and Orange County, Morgan Group Inc. is a private family-owned developer of high-end luxury apartment projects. The company manages its own properties, as well as the commercial and residential properties of other owners. In addition, the company has its own construction company.

Although financing is not in place as of yet, Chalupsky believes that being an equity company, MGI will have no problem attracting a construction loan because the firm already has established relationships with financiers.

Instant Insights /

Council Gives Green Light to Mixed-Use Project in Downtown Business District

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