Monday, May 30, 2005

Downtown Dallas Real Estate News

Downtown Dallas Real Estate News

FOREST CITY ABANDONS MERCANTILE REDEVELOPMENT

DALLAS (DallasNews.com) – The Mercantile Bank complex and Continental building have been dark on the real estate radar for quite some time, and it looks like that will not change any time soon. Forest City Enterprises had plans to redevelop the afflicted structures, but because an economic incentive agreement could not be met by the city, the Cleveland-based developer has pulled out of the project.

Forest City had originally asked the City of Dallas for $75 million in incentives to turn the complex into a high-traffic retail and residential development; however, the city could only bring $60 million to the table for the project. The funding lapse concludes negotiations for the complex, which is considered to be integral to downtown Dallas’ renaissance.

Assistant City Manager Ryan Evans said that they have to step back and rethink the project. “I’m confident we can still find an interested party to do it. But if we spent the amount of money Forest City was looking for, we wouldn’t be able to reach our overall goal of creating a vibrant downtown.”