The developers of CityPlace Burlington hope to begin construction in the late summer or early fall of this year, according to a vice-president for Brookfield Properties, co-owner of the project.

Aanen Olsen cautioned there's a "long road" of permitting on the city and state level to travel before construction begins — as well as a lawsuit that must be settled. He estimated it will take six months to get through the permitting process.

Brookfield hosted a public meeting at noon on Thursday in Contois Auditorium in City Hall, and planned a second meeting at 7 p.m. About 100 people attended the noon meeting, asking questions of the developers for about an hour after a short presentation.

More:Brookfield unveils downsized plan for CityPlace; construction to begin next year

Olsen said the existing permits for CityPlace Burlington must be amended because the project is changing substantially. Its 14-story towers will be replaced with 10-story towers, and all of the office space will be moved into the former Macy's building in a separate project.

The redesigned project has more housing than the original project, with 357 units, 72 of which will be affordable as defined by the city. The rental apartments will be available in studio, 1-bedroom and 2-bedroom versions, which will be 550, 820 and 1,150 square feet respectively.

The new design also includes a 196-room hotel, with a top-floor observation deck and restaurant that will be open to the public, accessible via elevators in the hotel lobby.

Retail has been de-emphasized in the new design, taking up a total of 45,000 square feet, all of it at street level. Both St. Paul and Pine streets will be reconnected. The new plan has 550 parking spaces for cars, along with 297 parking spaces for bicycles.

Square footage and cost down

UVM Medical Center had committed to occupying about 100,000 square feet of office space in the original project, which included an office tower. That lease agreement has expired and Olsen said Brookfield is in "active negotiation" with the medical center to move its office space into the former Macy's building under a new lease.

The total square footage of the project has dropped from more than 1 million square feet to 763,200 square feet. The total cost of construction has dropped as well, from about $250 million to about $200 million, according to Olsen.

Peter Calkins, a Massachusetts-based adviser to CityPlace Burlington, said he expects the project to take 27 to 30 months to complete, meaning it would be finished by the end of 2022 if construction begins in August or September of this year.

More:It's back: CityPlace opponents file lawsuit in state court after failing in federal court

Olsen said Brookfield is in talks with John Franco, the attorney representing a group of citizens who objected to the project in its original form, and that he hopes to reach a settlement soon. Olsen acknowledged that the lawsuit has to be settled before construction can begin.

Reached by telephone Thursday, Franco contradicted Olsen, saying there are currently no discussions with Brookfield.

"There were discussions, but they imposed conditions that were completely unacceptable," Franco said.

Trouble in paradise

Representatives of Brookfield Properties last appeared before the City Council at the end of October last year to give an update after Mayor Miro Weinberger sent a strongly worded letter to the development company, demanding immediate removal of the concrete barriers on Cherry and Bank streets and the restoration of sidewalks and parking.

The CityPlace project has been stalled since August 2018, when demolition of a portion of the outdated Burlington Town Center mall was completed.

Brookfield Properties formed a partnership, known as BTC Mall Associates with the original developer of the property, Don Sinex of Devonwood Investors. Both companies are based in New York City.

After a promising start, Sinex, a minority partner, ran into legal problems with Franco and a group of Burlington residents he represents, who were opposed to the development.

The lawsuit alleges that BTC Mall Associates violated a settlement agreement struck in July 2017 to end a series of earlier legal challenges to CityPlace.

BTC Mall Associates countersued Franco and the plaintiffs at the end of December, alleging a breach of good faith on their part, among other claims. Franco said Thursday he is filing a motion to dismiss BTC Mall Associates' counter-lawsuit.

Communicate, please

During the question-and-answer period, City Councilor Karen Paul, D-Ward 6, said the CityPlace project had been a series of "euphoric beginnings" followed by long delays, in fits of stops and starts.

"When there's a stop, there's been no communication," Paul said. "There may be roadblocks between now and August. If there are, communicate. Don't leave us hanging."

Paul asked Olsen if he would commit to monthly public updates on the progress of the project, and he said he would.

More:CityPlace Burlington: What happened in 2018 and what's ahead for 2019

Olsen said financing for the $200 million project is not yet nailed down, but that the Bank of the Ozarks — now called Bank OZK — remains interested. Karen Paul reminded Olsen that he previously told the city council that BTC Mall Associates had a signed term sheet with Bank of the Ozarks.

"The term sheet with the Bank of the Ozarks was for a much larger project," Olsen replied. "We're working on new terms."

Asked by one audience member whether Brookfield was "for real," Olsen said "We wouldn't be sitting here if we weren't for real. We know what the city has been through."

Olsen then said that Brookfield Properties had recently acquired a company that owned 150 shopping malls across the country. He said CityPlace Burlington will be a "poster child" for what Brookfield hopes to do with all of those other malls, converting them into mixed-use properties to restore them as centers of commerce in their communities.

Olsen said after the meeting the company Brookfield acquired is Chicago-based General Growth Properties. General Growth Properties previously owned Burlington Town Center Mall, selling it to Don Sinex of Devonwood Investors in 2013.

Contact Dan D’Ambrosio at 660-1841 or ddambrosio@freepressmedia.com. Follow him on Twitter @DanDambrosioVT.

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