City halts apartment developer

Neighbors wondered for months whether the Di Rimini apartment project at the southeast corner of Capitol Avenue and St. Clair Street eventually would resemble the renderings they had seen.

"We as a staff are trying to work out a solution with the developer," Peoni said. "If we can't get this worked out administratively, they're going to have to go back to another public hearing. The burden is on them."Total violations: 35What: 31-unit apartment buildingA week later, the Department of Code Enforcement issued a stop-work order for the project at 733 N. Capitol Ave. Senior planner Jeff York gave developer Di Rimini LLC a list of 35 points where the project built differs from the one approved.Sparks has the 34,000-square-foot building listed for sale on LoopNet with an asking price of $6.7 million - about $216,000 per unit. The listing says the "upscale multifamily housing development" geared toward students is scheduled for completion by Oct. 1, and that about half the units have been leased by a for-profit college.The violations pose the biggest test yet for the city's 2-year-old urban design guidelines, which developers and planners created to provide a basic framework for massing and scale of projects in the central business district. Neighbors and other developers are watching closely to see whether the city enforces the new rules.The changes from the agreed-upon building design have angered neighbors, particularly those who have followed the rules while investing in their own properties."The renderings and what's built don't match up - it's disappointing," said Andrews, also a board member of the Near North Development Corp., which supported the original plan. "Everybody will watch intently as this unfolds to see what happens. Clearly, we all see what's taken place here and we'll see what the repercussions are for breaking the rules."Stop-work order: September 2010"How did this happen? How could a plan that started as a promising project get turned into something that is a ghost of what was planned?" Urban Indy blog author Curt Ailes wrote in a post Sept. 28. One reader said the building looks like a Motel 6.Several directors for the not-for-profit Near North Development Corp. expressed concerns at a board meeting, leading the group to ask in an e-mail on Sept. 2 for the city planning department to take a look.A sampling: window openings, placement and style are wrong; windows and doors missing required trim; missing railings; promised outdoor plaza space missing; stone placement is wrong; planter boxes missing; massing and scale "designed totally different from approved plans."Source: IBJ researchThe building is a much more serious challenge to the urban design guidelines than the most prominent previous violation - a bright-yellow facade on a downtown Buffalo Wild Wings restaurant that the developer agreed to tone down in 2008.Sparks, reached on his cell phone, said he had no comment, then hung up. He and his attorney, Jeff Bellamy of the local firm Thrasher Buschmann and Voelkel, did not return repeated phone messages.Shiel Sexton, a general contractor, has its headquarters a few blocks to the north, and Andrews had been watching with dismay as the building took shape in recent months.Peoni said the developer thought "they were getting the project approved conceptually" and not each specific detail. He said Sparks was apologetic and humble in a recent meeting and has promised to produce new renderings showing planned fixes for the building, which replaced a vacant lot.Project in limboDeveloper: Di Rimini LLCSize: 34,000 square feetPlan approved: October 2009The city's planning staff met five separate times with Di Rimini principal Jeff Sparks and his attorney to ensure the project would meet the guidelines, said Mike Peoni, administrator for the city's department of planning. After the developer agreed to a long list of changes, a hearing examiner approved the proposal in October 2009, and the Metropolitan Development Commission gave its blessing in November. Construction began early this year.The city has issued a stop-work order for the Di Rimini development project after the developer failed to follow design features agreed upon before the plan's approval."There are a lot of times people don't follow what they're supposed to be doing, but it's usually not this major," acknowledged York, the senior city planner. "Before, we had minor issues that could be worked out with minor changes. I think this is a test."It's the first time John Andrews, director of business development for locally based Shiel Sexton, can remember a developer securing approval for one set of plans and building another.Where: 733 N. Capitol Ave.Signs outside the building promote open houses every weekend and by appointment for the apartment units, which are being offered, for $1,590 per month (includes one-car garage, stainless appliances and all utilities, including Internet and cable).The 31-unit building taking shape had fewer and different windows, less limestone and more synthetic stucco than promised. Two-story aluminum and glass storefronts were missing. The portion along St. Clair had three stories instead of four and was missing vertical columns.Principal: Jeff SparksAndrews said there are often good reasons for zoning variances, but such a blatant disregard of the rules should not be tolerated.Estimated cost: more than $5 millionBut no one will be moving in until the developer can reach terms with city planners. If they can't agree, the current approval could be voided and ultimately the fate of the project could wind up in court.

Source: IBJ research