Developer Explains Why He Backed Out of Peachtree Corners Property Purchase

Just when it looked as though it was a matter of time before the Peachtree Corners community would have a mixed-use development on the undeveloped land across from The Forum, the developer pulled out.

Bob Cheeley, with Piedmont Bank, had stepped in ahead of the city with a contract to buy the land. He explains why he had a change of heart just days before the anticipated April 15th closing date.

"It was a decision I made over the weekend," said Cheeley, who is also developing a 4.5 acre tract adjacent to Piedmont Bank. "I had a number of meetings with investors leading up to the weekend who really wanted to do something."

But without the property rezoned, he said he was not able to get the commitments he needed for the estimated $160 million cost of the development. "The final analysis is institutions don't like risks," he said.

To attract businesses investors need assurances that there are "sufficient on-site residents to keep the area alive," said Cheeley, which he said hinges on how the property is rezoned. "If you don't get enough density, it doesn't make economic sense," he said.

Preliminary plans for the tract of land had already been drawn up and included condominiums, retail, restaurant, office space, a 5-story hotel, an amphitheater and plenty green space for the community to use for outdoor activities.

Cheeley said he has not given up on the idea of developing the property. "I'm happy to step back in and eagerly pursue the development of the property (after it's been rezoned). This development could be a crown jewel, and I want to be part of it," he said.

Prior to Cheeley presenting his plans to purchase the property, city leaders had made preparations to set up a Downtown Development Authority (DDA) in anticipation that it would have to purchase the property from Lennar (the Miami, Fla-based current owner) on its own and had already tapped seven citizens to head up the authority. They are:

• Mike McLaughlin
• David Willey
• Bob Saville
• Gene Witkin
• LC Johnson
• Dan Graveline
• Ruth Strickland

At some point in the near future the board will be sworn in. The new DDA will be responsible for buying the property and sending out RFPs to prospective developers who want to bid on the property said Mayor Mike Mason. "Our intent is to finance it short term and sell it as soon as a suitable buyer is located," he said.

Cheeley said he still plans to move forward with his development plans of the acreage surrounding Piedmont Bank. "The next few months we expect to break ground," he said. Cheeley said he has lined up a new restaurant, coffee shop, a communications company and possibly an organic grocer to be a part of the new development

Related articles:

City to Buy Property After Developer Bows Out

Live Work Play Development Coming to Peachtree Corners

Roberts Property Across From The Forum To Be Developed

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