The Sunnyvale Sun

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Sunnyvale gets tough on plans for downtown

Georgia developer is told: Get busy or be replaced

By JASON GOLDMAN-HALL

The city of Sunnyvale--which has granted extensions and grace periods to Fourth Quarters Properties over the course of the downtown redevelopment ongoing saga--has finally had enough with the delays and changes, and has given the developer one final chance to correct the situation.

On June 2, the city sent a letter to Stan Thomas, who presides over both Forum Development Group and Fourth Quarter Properties. The letter states that if an "adequate and comprehensive response" to the city's inquiry is not received in time, the city may terminate the agreement with Fourth Quarter Properties and begin looking for other developers.

Fourth Quarter--the company set up by the Forum Development Group to handle redevelopment of the Town Center Mall--should have been well into the second phase of demolition by now.

But due to months of delays, nothing but the old parking structure east of Mathilda Avenue has been removed, and

Sunnyvale Communications Officer John Pilger said the city is just getting new plans and promises where it should be getting answers.

This comes on the tail of the March 8 Formal Notice of Default, that claimed Fourth Quarter had failed to meet a number of deadlines on the project. That notice demanded a response and a new plan, and instead, Pilger said the city received a new set of ideas for the project, some of which required general plan amendments and other changes that he said the city had never agreed to.

The new ideas were discussed at a number of places, including the most recent Chamber of Commerce breakfast mixer where Project Manager Jane Vaughan talked about project additions to include more houses, a lower-level theater and a supermarket.

"From the city's point of view, there is only one project, so whatever Fourth Quarter Properties has been working on that includes other things is not what the city agreed to and not what we expect from them," Pilger said. "It's unusual for us to be as blunt as we are on this, but it's a sign of the council's frustration. We've been mute for too long on this."

Vaughan has said in the past that part of the reason for the changes is rising construction costs. More for-sale houses would offset the cost to the developer.

Pilger said Fourth Quarter must comment within 10 days from when it receives the letter, so the deadline should be June 15 or 16. Calls for comment from Fourth Quarter were not returned.