August
1, 2007
By Bill Cooksey/The Lynn Journal
The deal between John Gransese and Forrest
City Enterprises over the Beacon Chevrolet site has come
to a halt. The deal for the waterfront property reached
a fever pitch, but has since fizzled after a 90-day due
diligence period came and went with no solid agreement
between the two parties.
James Cowdell, executive director of the
Lynn Economic Development, said the city will no work to
purse another deal, and that several interested parties
have contacted his department looking for more information.
"I think it's important to understand why
Forrest City lost interest," said City Councilor Paul Crowley.
"It seems we have put everything into place to make it
a lucrative and attractive site."
Forrest City Enterprises is a publicly
traded company (NYSE: FCEA) and has a net worth of $9.2
billion. The company just recently broke ground on a $161
million retail center inVirginia and deals in the acquisition,
development and management of commercial and residential
real estate throughout the United States.
The negotiations may have broken off because
of several factors. After the purchase of the land, it
would have been at least 18 months before a shovel dug
into the ground. A number of things must fall into place
before any development could occur.
Crowley said the council still needs to
adopt the Lynn Waterfront Master Plan, which is set to
be rolled out before the council's subcommittee on August
7.
Those plans then must meet muster with
the Harbormaster Plan and then be cleared by the Coastal
Zone Management, a process that could have spooked Forrest
City from pursuing the parcel.
"A large company like that may have enough
money on hand to make a deal," Crowley said. "However,
when you have a corporation that is looking to develop,
they may have moved onto another plan given the time it
would take to get a shovel in the ground here."
Besides the approval of master plans, the
power lines along the waterfront continue to impede plans
for any project.
National Grid finished a study that suggested
moving the power lines, which appeared to be a realistic,
and economically responsible idea. A company spokesman
said the lines would have had to been upgraded and maintained,
so moving them would have made the process less time-consuming
and cheaper.
The power lines will soon have another
home on the opposite side of the Lynnway, which is owned
by General Electric.
With the recent deal off the table, EDIC
and the city are moving full steam ahead to ensure something
is in place in the near future that will help move along
Cowdell's intended plans for the land that sits along the
waterfront on the Lynnway.
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