Jack MacGrory, chairman of San Diego-based lender Price Legacy Corp., told reporters his company decreased its $50-million investment in the McDowell and Scottsdale road project to $22 million because of legal challenges over a development agreement with the city and a March 9 ballot question that could put an end to Scottsdale's $36.7-million subsidy of the controversial project.
David Roderique, economic development manager for Scottsdale tells GlobeSt.com that the implications of Price Legacy's decision remains unclear. "We don't know what it means right now. It's an issue between the developer and the lender," he says.
Hypothetically, the lender write-down could improve negotiations with developer Steve Ellman, who is planning to build a Wal-Mart, Sam's Club and Lowe's Home Improvement Center on the site, give the city the leverage to offer a smaller subsidy or possibly open up the 42-acre site to other developers, Roderique says.
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