The council voted to issue a "notice to cure" to Ohio-based Developers Diversified Realty, which has approximately $17.5 million invested in the project. That decision provides the developer with two options: either findfinancing within 30 days or be fired from the project.
"We are extremely surprised and disappointed by the action taken by the Long Beach City Council regarding the Queensway Bay project," says Eric Mallory, a senior VP at DDR. The project was fully financed and substantially pre-leased before the anchor theater tenants filed bankruptcy. However, city officials say the project is already nearly two years behind schedule.
The Queensway Bay project is tied to the city's efforts to revitalize and redevelop Long Beach's downtown bay area. If DDR is kicked off the project, city officials say a smaller project will be considered.
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