TRA, the city-founded group that oversees the downtown district’s development, cited economic conditions in the nonrenewal letter to Henry Turley Co.
The original contract was signed in 1999, TRA Chairman John Oxford said. It expired in November 2009.
In the letter, TRA writes that Turley’s “vision and advice over the years has had a large part to do with the success of TRA and Fairpark.”
Turley’s signature development is Memphis’ Harbor Town, which is the model for Fairpark.
The group said it could not renew the contract because of the “economic realities facing everyone.”
“Accordingly, the determination by TRA is to ‘weather the storm’ by pulling in and trying to manage the properties and projects that it currently has and to limit the development efforts in the foreseeable future,” the letter said.
TRA member Reed Hillen said the contract called for Turley to be paid a certain percentage after every land sale in Fairpark.
Since the contract expired, TRA no longer will pay the commission. However, TRA said it would honor its commitment of a 6 percent real estate commission and an “appropriate” development fee on any successful projects that are either referred or developed by Turley.
Also, TRA would like an hourly consulting agreement with Tony Bologna of Bologna Consultants, which works with Turley and has been involved with the Fairpark project.
Bologna would be used for consulting oversight and guidance on the planning, design, engineering, design review and construction of existing prospects.
Hillen said TRA hopes to work out the hourly agreement soon.
“Given the economic times,” he said, “we think we are ahead of where we want to be, but we have to get through the next year or two as best we can.”
Contact Carlie Kollath at (662) 678-1598 or email@example.com.