Westminster has abandoned plans to work with California firm Oliver McMillan as master developer of the city’s 105-acre future downtown at the corner of U.S. 36 and Sheridan Boulevard.
The city announced this week that it is returning to a “block by block” approach with multiple developers working the site, which for more than three decades .
The mall was razed nearly four years ago.
“Both teams tried our best to achieve an agreement but we just couldn’t get there,” Deputy City Manager Jody Andrews said Wednesday of the breakdown in discussions with Oliver McMillan.
But Andrews said the city is already meeting with other developers this week interested in being a part of a mixed-use community that could include on one of the premium pieces of real estate in the Denver metro area.
The project would also set to open in 2016 on U.S. 36.
“Ultimately at build-out, we could have 15 to 30 development interests involved,” Andrews said.
A block-by-block approach had been Westminster’s earlier approach with the site until it entered into exclusive negotiations with Oliver McMillan as master developer 14 months ago, Andrews said.
He said the firm is still welcome to be a part of the redevelopment effort.
“We have only just learned of the City’s change of direction,” Paul Buss, president of OliverMcMillan, said in a statement. “As such, we do not have sufficient information for a response.”
This week’s announcement of a shift in strategy, Andrews said, will delay the groundbreaking of the first buildings in the new downtown district by half a year or so — from early 2016 to fall 2016.
But the city, which bought almost all of the land at the site for $22 million in 2011, still plans to start road building and utility installation this summer.
“We’re so confident in this site and we’re staying on course with our utilities and streets,” he said. “Looking forward, we’re feeling optimistic and we’re well poised. We know the site has very strong fundamentals.”
Councilman Bruce Baker, who has been highly critical of the city’s approach to redeveloping the site, said Oliver McMillan is the third master developer with which Westminster has failed to strike a deal in as many years.
The best thing for the project, he said, would be to leave it to the private market to develop without interference from and financial risk to the city.
“I’m all for risk but I think risk should be undertaken by private individuals,” he said.
John Aguilar: 303-954-1695, jaguilar@denverpost.com or twitter.com/abuvthefold
