I have been wanting to tell all of you what is happening with the apartments and tonight the Council approved a Master 380 agreement concerning the apartments in the Lamar Overlay. Essentially Bob Kembel of Viridian started his own development company JCKPL. He has been actively pursuing the apartment complexes along Lamar. He has successfully put the following apartments under contract, Huntington Chase, Pointe at North Highland, and Water Chase. The fourth apartment complex is still in play. The city has agreed to participate in this process.
Phase I will consist of the demolition of Huntington Chase and the Pointe and the city will put up 1.5 million in good faith. Half a million will be granted upon the demolition of phase II and III. $750k will be given to secure drainage improvements for the project. And a total of 2.4 million will be given to demo the entire project. The total give by the city is 5.2 million. The total funding required by the developer is $160 million.
Let me simply say that it was truly a miracle that we were able to find a developer, and then have the developer come up with $160 million to help solve our apartment problem. This deal is simply an overall agreement that the city will work with the developer in good faith. I would like to bring to your attention that the Lamar Overlay has been in existence for the last 8 years and nothing has happened. Mr. Kembel intends to comply with the restrictions set forth in the overlay. Some single family, some retail and mixed use centered around three large apartment complexes. The driving force behind this project was our City Manager, Trey Yelverton and Bruce Payne from Economic Development. I plan on having an Apartment Town Hall Meeting at the Convention Center in the middle of August to show you what the Plan will entail. Your neighborhoods in this area just got a face lift, and a big boost in property values.
Bob Kembel has been working on a plan with local community leaders concerning relocation and the gradual movement of affected citizens as leases expire. It was a good day at City Hall.