FAYETTEVILLE — Specialized Real Estate Group no longer plans to build a multistory apartment complex at Dickson Street and Block Avenue.
Seth Mims, president of the Fayetteville-based company, said Thursday he terminated a contract to buy the property where the Divinity Hotel and Condos project was once planned. The parking lot across from the Dickson Street post office, has been owned by brothers Haitham, Sam and Essa Alley since 2010, according to Washington County property records.
“We’ve decided to step back from that development opportunity,” Mims said. “It’s clear that our potential development plans were putting pressure on some members of the City Council to push through an ordinance that could have far-reaching and perhaps unintended consequences.”
Mims was referring to a proposal by Sarah Marsh, Ward 1 alderwoman, to create new height and setback requirements throughout town. The proposal, up for Planning Commission review Monday, will require buildings to be set back at least 5 feet from side and rear property lines, with some exceptions.
At A Glance
Former Divinity Site
Fayetteville aldermen in July 2006 approved plans for a 15-story, mixed-use development called the Divinity south of Dickson Street between Block and Church avenues. The project was proposed by former Northwest Arkansas developer Brandon Barber. The next month, Peter Tooker and Mike Shirkey, who owns Good Folk Productions and used to host concerts and special events at a house at 229 N. Block Ave., filed a lawsuit opposing the project. Barber’s company, The Barber Group, abandoned the development the following year.
Source: Staff Report
Building height would be limited to 36 feet or the height of an adjacent structure. A building would have to step back 10 feet before going up 60 feet, or roughly five stories. Developers would have to meet certain criteria, including building to Leadership in Energy and Environmental Design standards, to build anything taller.
Mims wouldn't discuss the size and scope of the development his company had planned, but said it would have fit within the parameters of Marsh’s proposal. “The setback (provision) required no major adjustment,” Mims said. Specialized has built other projects to LEED standards. Eco Modern Flats, which opened in 2011 on Hill Avenue, was Washington County’s first platinum LEED certified building.
“It’s not what the ordinance would have done to that site (at Block and Dickson),” Mims said. “It’s what the ordinance has potential to do to other sites across town.” Having to step back buildings at a certain height has potential to reduce the number of units a developer can include in a project.
The Dickson and Block project isn't the first time Specialized Real Estate has backed off plans amid public concern. The company was the high bidder on the City Hospital property south of the Fayetteville Public Library when Washington Regional Medical Center put it up for sale earlier this year.
Mims said his company shelved plans for City Hospital after library officials expressed interest in buying it. A thriving public library or more storefronts on Dickson Street encourage people to live downtown, which is good for the development market and, thus, good for Specialized Real Estate, Mims said.
He said Specialized walked away from the Dickson and Block site after investing in surveys, an environmental assessment and preliminary engineering and architectural work.
Specialized is the same company that opened part of the Sterling Frisco apartments at West Avenue and Lafayette Street in August. The company is building a 471-bedroom complex at West Center and Duncan Avenue. A similar complex is being designed a block away at Hill Avenue and Center Street. The company has plans approved for apartments on the parking lot along Lafayette Street north of University Baptist Church activity center.
Marsh said Friday she thought being committed to so many projects might have more to do with the company’s decision to back off the Dickson and Block project than opposition to her proposed ordinance.
“I suspect the ordinance may be a convenient way to justify them backing out,” Marsh said. “I would imagine there’s probably a cash-flow situation there.”
Mims refuted her claim. “I can understand why Ms. Marsh might think that, because we’re certainly very busy. But that is not the reason we have not elected to move forward with this project at this time.”
Marsh said, while the Dickson and Block project prompted the proposed ordinance changes, her proposal has a broader intent: preserving existing property owners’ quality of life and ensuring compatible development.
“I want to make sure we get the right development, not just any development,” Marsh said.
She said she’s willing to listen to feedback from anyone who has a stake in developing downtown. “If there are opportunities to improve the ordinance, that’s great,” Marsh said. “I’m not set on these particular parameters.”
Haitham Alley, a part-owner of the property along Dickson Street, said he and his brothers will continue to weigh their options for developing the site.
“We’re talking to two or three other people right now,” Alley said. “I don’t think it’s going to be a problem developing that property.”
“I think it would have been a beautiful development right on Dickson Street, but we’ll have to regroup and go from there,” he added.
Nina Shirkey, whose newly renovated home borders the former Divinity site, declined to comment Friday.
Marsh’s proposal is up for discussion at Monday’s Planning Commission meeting, which begins at 5:30 p.m. at the City Administration Building, 113 W. Mountain St. City Council members are scheduled to review the proposal for a fourth time Nov. 5.