October 24, 2008 3:36 PM

Lend Lease Communities may pull out of Lowry Range

Here is the letter that Chris Waggett, president of Denver-based Lend Lease Communities released today regarding possibly terminating its development agreement at the Lowry Range.

I am writing to let you know that Lend Lease Lowry Range LLC, a wholly
owned subsidiary of Lend Lease Communities LLC, has submitted to the
Colorado State Land Board a notice of intent to terminate on Dec. 31,
2008 the agreement that appoints Lend Lease Lowry Range LLC as the
developer of the Lowry Range Development Parcel.
Receipt of the notice was confirmed earlier this morning at a Colorado State
Board of Land Commissioners meeting.
We have determined that various, essential pre-development conditions set
forth in the Development Management Services Agreement dated June 22,
2007, are seemingly unlikely to be met by the end of this year.
As such,Lend Lease Lowry Range LLC has fulfilled a procedural obligation under
the agreement with the Colorado State Land Board by formalizing in writing
the intent to terminate.
An existing Lease between the Colorado State Land Board and Rangeview
Metropolitan District impacts two of the Development Parcel's six sections.
Lend Lease Lowry Range LLC has determined that it will not be able to
obtain an adequate water supply or adequate wastewater treatment facilities
at a commercially reasonable cost for these two sections from Rangeview
and its existing water provider, Pure Cycle Corporation, much less for the
full buildout of the overall property.
These circumstances have impeded its ability to fully explore alternative sources of sustainable water for the project.
We have consistently and publicly maintained that our vision for the Lowry
Range project includes a sustainable water supply that could consist of an
appropriate balance between renewable and nonrenewable sources and
provides adequate wastewater treatment facilities.
The water supply would need to be legally and physically available for the full buildout of the project - in a manner consistent with project phasing - and set at a commercially
reasonable cost.
We have worked with Rangeview and Pure Cycle towards this goal for nearly two years to no avail.
We are very disappointed to find ourselves in this position.
Our plans for the Lowry Range community were slated to bring great benefit to the State of Colorado at-large and the Denver-Metro region, including:
• $334 million in anticipated revenue for the Colorado School Trust
and K-12 public schools statewide over the next 20 years.
• National recognition for delivering the first large-scale zero net
energy mixed-use community.
• 17,000 acres of land that would be planned strictly for perpetual
conservation and open space.
• A community development project of state and regional significance.
Lend Lease Communities LLC
Moreover, the project would have supported sustainability in every regard,
and set a new benchmark for future sustainable development in the region.
Through December 31, 2008, it is our intention to maintain the same level of
commitment to the Lowry Range project that we have exercised since it was
awarded.
As our partners in the project, we will keep you apprised of any
changes and updates.
Please know that despite this unfortunate turn of events with regard to the
Lowry Range development, Lend Lease stands by its commitment to the
State of Colorado and the immediate Denver-Metro region towards
implementing sustainable development in all of its projects.
Yours sincerely,
Lend Lease Communities LLC,
as sole member of Lend Lease Lowry Range LLC
Chris Waggett
President.

Posted by John Rebchook at 3:36 PM | Comments (0)