Temple Daily Telegram
emple officials announced Thursday that the redevelopment effort with Criterion won’t proceed forward because of the lack of financial backing.
In October 2014, the city entered into an economic development agreement with Criterion in which the city agreed to convey the Hawn Hotel and adjacent theater properties to Criterion. The plan was for Criterion to convert the hotel into a residential and retail facility and renovate the Arcadia Theater into a mixed-use performing arts venue.
The original agreement contained a reversionary clause that states that if Criterion had not commenced construction by Oct. 8, 2016, it would have to convey ownership of the properties back to the city.
That agreement was amended in August to give the developer more time to start construction as long as certain criteria were met.
One criteria was that Criterion would have to present a letter of credit showing they had the proper financing in place for the entire Hawn Hotel renovation and the facade renovation of the Arcadia. City Attorney Kayla Landeros said Criterion was unable to provide such proof of financial backing.
Ownership of the Hawn Hotel will now be conveyed back to the city while ownership of the Arcadia will be conveyed back to the Temple Historic Arcadia Theater Group, a nonprofit organization that manages the theater.
The city will now develop a request for proposal to offer the downtown properties to other potential developers with hopes of enticing a new project in the near future.
Purchasing Director Belinda Mattke said it’s important to have a timely development schedule.
“We don’t want to have these buildings sit there too much longer,” Mattke said
Mattke said the request for proposal will outline the city’s vision for the property, which is to preserve the historic character of the buildings and bring valuable purpose to the downtown area.
Though several attempts to repurpose the properties have fallen short in recent years, Downtown Development Coordinator Sherri Street said she’s confident the buildings will eventually have new life.
“I think now is the time. Things are really starting to happen (downtown),” Street said. “We’re getting businesses on a daily basis calling and wanting space. I think (the Hawn) would just be a catalyst to get it moving faster.”
She said the buildings stand as a pillar of the city’s history.
“They are iconic. They belong to the city and they belong to everybody. Everybody has heartstrings attached,” Street said. “I think to get that up and going again would really get things moving. Things are moving already, but I think that would be tremendous.”