The city of Fergus Falls severed ties with a developer after three years of discussions about a makeover for a giant property that was once a state asylum.
City Council members voted Monday night to end negotiations with Ray Willey, chief executive of Georgia-based Historic Properties LLC, citing repeated missed deadlines and a loss of trust in the group's commitment to redeveloping the former Regional Treatment Center, known locally as the Kirkbride.
The decision comes after a year of fits and starts between the city and developer over a proposed $41 million redevelopment for the four-story, 500,000-square-foot complex that housed 1,700 people at its peak and was the largest mental institution in the state.
Historic Properties, a company that specializes in renovating older buildings, got further into redevelopment discussions with city officials than any previous firm.
"The sad thing is that the city has put a lot of time and resources into the current developer, and the developer has put a lot of time and resources into the project, too," Fergus Falls Council Member Justin Arneson said Tuesday.
The company planned to rehab the century-old structure in phases, the first one costing $21 million, yet the final point of contention was just $350,000. Willey asked for it upfront, but the city said it would provide it after a certificate of occupancy was secured.
"That was the hair that broke the camel's back," said Darren Appert, a City Council member. "We are willing to offer him something, just not right up front."
Willey called Council Member Anthony Hicks hours before Monday's meeting, agreeing to accept the money later, but it was too late. The council's patience had finally worn out, and council members decided to start over by seeking a new partner.
