Message from the SRA Representatives
March 14, 2019
Dear Neighbors,
This morning The Related Companies auctioned and took possession of approximately 220 acres of land mortgaged by LStar and zoned for commercial development at Union Point. Combined with the previous foreclosure and acquisition of residential-zoned property by Washington Capital, these parcels represent a substantial majority of the land available for development at Union Point.
LStar remains the named master developer of Union Point. The Southfield Redevelopment Authority (SRA) has notified LStar that they are in default of their obligations as master developer. If LStar does not provide a satisfactory remedy for the default, the Authority expects to terminate LStar as master developer later this month or early in April.
The process of remedy or termination has been frustratingly but necessarily slow. The SRA must act within the cumbersome legal framework of enabling legislation which created the Authority, as well as the Development and Disposition Agreement between the Authority and LStar. We have worked diligently with our legal counsel to ensure a fair and compliant process.
In the event that LStar is terminated, both Washington Capital and Related Companies have pledged to work with the SRA to secure a new master developer and work toward a new development plan acceptable to all stakeholders. Several reputable regional and national development companies have indicated a preliminary interest in the project.
The SRA will encourage an open vetting of interested developers and their plans. We believe the residents of Union Point and the host communities deserve to know exactly what is proposed, the economics behind those proposals, and a public explanation of any alternatives. An open discussion and clear resolution of the Southfield Landowner’s Association structure, as well as municipal and developer infrastructure and maintenance obligations should be part of the public discussion.
In spite of all the travails, both of us strongly believe in the future of the development. It is vitally important, however, that residents stay fully engaged in the process and be ready to make our voices heard. Please join the Southfield Neighborhood Association, participate in the UPvoters.org ‘get out the vote’ effort, and be ready to speak with resolute determination. Our community voice can act as an important catalyst is ensuring a development that benefits all stakeholders.
Lyndsey Kruzer
David Rubin