SRA Notice of Intent to Terminate LStar
February 20, 2019
As you may have anticipated, the Southfield Redevelopment Authority (SRA) voted tonight to serve LStar with notice of termination pursuant to Section 11.3 of the Third Amended and Restated Disposition and Development Agreement (DDA). Many of you might remember that in December the SRA board voted to serve LStar with notice they are in breach of the DDA. This gave LStar a reasonable period of time to cure such default, not to be less than 30 days. The SRA now feels that a reasonable time period has been given, and the defaults have not been cured. Therefore the SRA has taken the next step to notify LStar of their termination as the master developer of Union Point. Notice of the termination of the DDA means that in 30 days LStar will no longer be the master developer within Union Point. The SRA may need to institute legal proceedings to clean up some of what that means and ensure a court agrees with their assessment.
There are more questions than answers on what this means for the future. As much as we would love to speculate exactly what this means, it appears to early to tell. The possibilities are endless and opportunities will come along with that. The Southfield Neighborhood Association (SNA) Board of Directors is doing everything we can to make sure the residents have a seat at the table during these important discussions.
Additionally, Washington Capital has scheduled an additional foreclosure auction on the commercial land used to secure the debt. This will take place on March 13th.
The patriot ledger article describes the meeting as well at: https://www.patriotledger.com/news/20190220/board-seeks-to-oust-embattled-union-point-developer
Please feel free to contact us if you have any questions,
Brittany Besler
Heidi Anderson
Robin White
Robin McNamara
Linda Rubin
Lori Gover