POKO, no loan in hand yet, given more time by Norwalk

NORWALK, Conn. – Rumors that the city would declare POKO Partners in default of its contract with Norwalk if the developer did not close on its construction loan by Tuesday appear to have been exaggerated.

POKO’s deadline to close on its loan is specified as June 30 in the Land Disposition Agreement (LDA) extension that was granted by the Common Council and the Redevelopment Agency in August. Although that is Tuesday, on Monday Corporation Counsel Mario Coppola released this statement:

“Mayor Rilling and the leadership of the Common Council and Redevelopment Agency have been regularly participating in detailed discussions with officials from Citibank regarding the status of the perspective closing on the construction financing for Phase I of the Wall Street Place Project. At this time the City and the Agency acknowledge that a closing on this transaction is advancing. However, that closing will not occur by the close of business today, the date by which the Redeveloper (POKO) was to evidence to the public parties that all project financing has been closed upon. The City and Agency maintain the right to exercise the Redeveloper Default provisions of the LDA without further deliberation or notice. Between now and the next regularly scheduled Common Council meeting, the City and Agency will review the progress of the referenced loan closing with Citibank officials. As of the next Common Council meeting on July 14, 2015, if POKO has not closed on its construction financing with Citibank then the City and Agency will assess POKO with a $1,000 penalty for every day that POKO is late on obtaining its financing for Phase I.”

Council members had planned to hold a special meeting Tuesday evening to discuss in secret the POKO LDA should POKO be in default. They will instead discuss a different LDA – the one regarding the 95/7 site, the last parcels of the Reed Putnam Urban Renewal area, where General Growth Properties (GGP) is looking to build a mall.

GGP sent an email to its mailing list, including media, Monday afternoon asking supporters to attend the meeting:

A special meeting of the Norwalk Common Council will take place tomorrow, June 30 at 6:00 PM. The meeting will take place in the Council Chambers in Norwalk City Hall, located at 125 East Avenue, Norwalk, CT.

This meeting is an Executive Session to review the proposed terms of the negotiations between GGP and the City of Norwalk, and the potential disposition of land rights and related rights of way relative to our development.

While the hearing is closed to the public, the Council is providing citizens the opportunity to give their comments prior to going into Executive Session.

If your schedule permits, we welcome you to attend the public commentary at the beginning of the meeting and give a few remarks indicating your support. Please note, you will not have to stay following the public commentary, which is anticipated to be brief.

We thank you for your continued support during this critical time.