The city of College Park is terminating its contract with the intended developer of the residential portion of the massive, $1.5 billion Six West development project near Hartsfield-Jackson International Airport.
Officials made the decision to end an agreement with Property Markets Group during a Business Industrial Development Authority (BIDA) meeting this week. They chose a replacement developer, Nysa Capital, which BIDA members have previously described as less qualified than Property Markets Group.
Mayor Bianca Motley Broom, who opposed the measure, and Tracey Wyatt, BIDA’s board chair, said they believe the city could face a lawsuit as result of the action.
“I think this motion is illegal and I think the consequences are going to be severe,” Wyatt said before the vote.
Six West is College Park’s public-private mixed-used development project near Hartsfield-Jackson International Airport. Stream Realty Partners is the broker for the 311-acre site that is to include hotels, luxury retail and millions of square feet of office space.
In April, BIDA members approved Property Markets Group — a firm officials selected through a request for proposals process — and Stream Realty to develop a mix of residential homes on 55 acres of the Six West site. Property Markets Group is the developer of Society Atlanta mixed-use development in Midtown Atlanta and numerous projects across the U.S.
Wednesday, BIDA members changed course and voted to cancel the city’s purchase and sale agreement with Property Markets Group and instead partner with Nysa Capital.
“This will send a terrible message to the development community and we will take another hit to our reputation,” said Motley Broom, who attended the meeting via teleconference. “We may end up with a lawsuit for breach” of contract.
BIDA members did not discuss the reasons for terminating the contract. The BIDA board is made up of the mayor, Mayor Pro Tem Roderick Gay and five citizen appointees representing city wards.
The April meeting was contentious before BIDA members approved Property Markets Group in a split vote. Members commented that Nysa Capital was not a recommended choice of College Park financial advisor Ed Wall, who could not verify there was adequate funding for the project.
Nysa Capital is planning a mixed-use project in downtown Kennesaw, according to the firm’s website.
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