Don’t look for downtown living to pop up on Rolling Mill Hill anytime soon. The deal between the Metro Development and Housing Agency, and the duo of Post Properties and The Mathews Company, to turn the old General Hospital site into a residential/office complex is dead.
“We simply couldn’t make the numbers work,” said Ed Allen, vice president of development for Post, in a Tuesday press release.
Some industry analysts speculate that a decline in the amount of capital available to Post to finance the project caused the developer to back away.
In January 1998, MDHA selected the Post/Mathews plan to construct 1,424 living units and 310,000 square feet of commercial space on the 35-acre site. Post/Mathews proposed paying Metro $20 million for the land, and requested $30 million in tax-increment financing (TIF)—$20 million more TIF than MDHA had allocated for the project. MDHA uses TIF to write down the cost of land acquisition and/or pay for infrastructure improvements. Critics of MDHA’s decision pointed out that the agency had rejected a rival plan that sought only $10.9 million in TIF.
In subsequent negotiations with Post/Mathews, MDHA agreed to an $11 million land price, but held fast to the $10 million in TIF. Now MDHA is looking for a brand new deal.
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