Despite the fact that Austin’s downtown is solidly weathering the financial storm and has avoided the kind of collapses familiar to those who followed the condo booms in places such as Miami, FL, there’s still the occasional piece of bad news.
In a time when new projects in the heart of Downtown Austin are still being announced and there’s another boom on the horizon, the developers of the 1155 Barton Springs project have just filed for Chapter 11 protection.
The project, which has been plagued with financial and approval issues since the beginning, is located just across the street from the Palmer Events Center, and was forced to make this move after the lender decided not to renew their loan this month. But even this bad news for the developers comes with a silver lining: the project isn’t doomed, and the developers view this as nothing more than a temporary setback.
The 1155 Barton Springs project has been in the works since all the way back in 2005, and has operated under various names including “The Milan.” Financial issues are just one of the problems that they developers have faced in trying to bring the project to fruition. The first attempt to break ground was announced and scheduled for 2007, with tenants supposedly set to move in by Mid-2009, but that fell through.
The Bouldin Creek Neighborhood Association filed complaints in 2004 and the project was in three-year legal limbo due to zoning and compatibility disputes. And in the first quarter of 2008, the leaders of the company decided to simply shelve the project until such time as the downturn in the economy and the lending drought could be mitigated.
The project is now back on target (sort-of) and the developers are actively trying to resolve the current issues with their lenders so that they can move forward. Though no target date is set, the parties have now negotiated a final judgment in terms of the height of the building and the compatibility concerns, and the developers have stated that it’s only a matter of time before the project is back online.
The building (not yet named) will include 24 residential units ranging from 1,600 to an astounding 6,200 square feet, priced from about $1M to in upwards of $6M each.
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