OZARK -- Plans to redevelop 47.5 acres near the Ozark square are back on track after the city came to an agreement to repurchase land sold to a developer.

 

Ozark City Attorney David Collignon said the city agreed to pay $855,000 to buy back about two acres of property from Hagerman New Urbanism and three entities created by the Springfield firm, thus settling a lawsuit filed against the city by the company.

The two pieces of property originally were sold to HNU in September 2007 for about $200,000, with the firm to develop the land as part of the city's 47.5-acre mixed-use redevelopment project along West Jackson Street, North Third Street and West Church Street.

Despite the price difference, Collignon said the agreement ultimately saves time and more money.

"While the situation sounds like, 'Oh my God, they paid an ungodly amount of money for this property that they previously purchased and sold to Hagerman,' you also have to remember the other parts of the consideration: We don't go to condemnation, they dismiss their lawsuit, they release any liens and/or other claims," he said.

The city had sold the properties to HNU with an agreement that the firm would buy more properties and develop the area, Collignon said. However, the development never took place, with the firm citing financing issues on the $5 million bid.

HNU partner Bo Hagerman did not return calls Monday seeking comment.

With no development happening, the city asked to buy back the land for $800,000. HNU asked for $1.35 million.

HNU claimed expenses for platting, zoning, engineering and improvements, but the city contended that nothing had been done to the property and claimed the developers did not meet certain guidelines in the agreement.

"There are certain timelines in which they were to do certain things," Collignon said. "There was also a timeline within which they were to acquire the financing to develop the property. They missed those deadlines."

Collignon said the firm also missed two deadlines to purchase additional properties in the redevelopment area.

After two months of meetings ended with no agreement, HNU filed a lawsuit against the city saying it had violated its contract with the firm and they were never paid by the city for work done to the properties.

The city -- maintaining HNU violated the contract -- then sent out letters to condemn the properties because they needed them back as part of the redevelopment plan, but HNU had plans to sell it because they couldn't develop it, Collignon said.

"In order to put the properties back together and offer a package to a developer or multiple developers ... it was necessary to acquire the balance of the property," Collignon said.

With the lawsuit settled and a purchase agreement finalized, the city has put the project back on the bidding table and has spoken to several developers to take on the mixed-use development.

There will be a few changes this time around, Collignon said.

The city will break down the project into separate tracts and lots to make it easier for developers to finance and develop, he said.

Developers also will have to show the city proof of financing, construction plans and letters of intent from tenants in commercial lots before any contracts are signed.