The Economic Development Authority in Staunton, Augusta County, Virginia, ended the talks with Richmond-based Synergy Development Group and Mark Lichtman of Bethesda, Md about the supposed development of a hospital site into a mixed use complex. After four months of negotiation for the mixed use complex project, the officials of the development authority voted to terminate the agreement, after Synergy Development Group failed to present a proposal to acquire the hospital site from the city of Staunton, where the mixed use complex is supposed to be constructed.
In Wisconsin, the Village Board of Little Chute having similar problem about a $4 million development project, which has basically “blown-up. The board neither rejected nor approved the contract termination agreement, which could mean that the developer, Jerry Van Dyn Hoven to reimburse the village.
According to the director of the Economic Development Authority, Bill Hamilton, the city needs to start making payment for the site after the council terminated the talk with Synergy Development for the development of the mixed use complex.
There is a $15 million agreement between the city of Staunton and the state of Virginia for the site, which is now home to the Western State Hospital.
The site where the mixed use complex is supposed to be constructed is located at the intersection of U.S. 250 and Interstate 81.
The authority began the agreement with the developers for the mixed use complex on the site in 2010. A predevelopment agreement has also been signed in January 27, 2011 between the Economic Development Authority and the developers.
Staunton agrees to pay the developers about $160,000 for the mixed use complex’s development plan, civil engineering, and marketing for its opening.