Developer of twin towers project needs more time to secure funding
The developer planning to build two 23-story residential/commercial towers in Milpitas is seeking a a two-year extension from the city while it continues to seek adequate financing.
The city’s Planning Commission unanimously endorsed the extension request by Southern California-based developer BDK Capital on May 9 and the City Council agreed Tuesday to consider approving it on June 5.
The so-called Milpitas Landmark Towers would become the city’s tallest structures, surpassing the 129-foot, 12-story Crowne Plaza San Jose-Silicon Valley hotel by more than 100 feet.
The developer said in a letter to the city “the original planned funding methods” for the Towers, including money from Chinese investors, “are becoming increasingly challenging” to secure.
Project manager Robert Ritner told the Planning Commission that BDK has begun to seek funding from investment banks.
Commissioner Rajeev Madnawat asked Ritner if the company will be able to get enough funding.
“If we approve this thing and you’re not able to execute, then it will delay the development in the city,” Madnawat said. “If we don’t approve it, you will be forced to give it to someone who has the financing capacity.”
Ritner said he is confident the project will happen. “Since we had to change gears, we had to start all over and that takes time,” he added.
The Towers, planned for a roughly three-acre parcel at 600 Barber Lane west of Interstate 880, was approved by the council as an 18-story residential and commercial building in 2008.
The plans and land were purchased in 2014 from the original developer, TP Pham of San Francisco, by Arcadia-based developer Singpoli — the parent company of BDK Capital — for $21 million.
BDK added a second high-rise tower and more residential units, and reduced the total commercial space.
The council approved the updated project in April 2016. Although the project’s website lists the massive development as …read more
Source:: The Mercury News – Business