Hoque Global is renegotiating a deal after a missed development deadline.
The city of Mansfield, a suburb south of Arlington, is giving Hoque a mulligan after it missed a construction deadline on its proposed $50 million Smith & Elm mixed-use project, the Dallas Business Journal reported.
The developer had until Dec. 30 to pour the foundation on the project, which includes 249 residential units, over 11,700 square feet of commercial space and a 7,800-square-foot civic plaza but failed to meet the milestone. The lapse triggered a clause in the contract that let the city reclaim the land.
City officials say they’re continuing to work with Hoque despite the slip, and they expect a restructured agreement could be ready for a council vote in June. A new deal will be subject to review by third-party consultant Baker Tilly to ensure financial viability before the city moves forward.
The land won’t be sold back to Hoque until a deal is made that guarantees the project would be ready for construction in 30 to 60 days.
The missed deadline is “not going to deter us” from moving forward, calling it “a partnership from day one,” Mansfield Economic Development Corporation Executive Director Jason Moore said.
The shot at redemption marks the latest chapter in a string of Hoque Global projects plagued by delays.
The developer also missed deadlines in Fort Worth’s Evans & Rosedale Urban Village, leading the city to ditch its contract with the firm and select another developer.
Hoque started construction on its $1 billion University Hills project in Dallas last week after deadline extensions, the same day it was obligated to close on buying the land under the terms of a revised development agreement approved by the city in December.
In Mansfield, Hoque cited infrastructure issues and rising construction costs as factors in the missed deadline. In a letter to the city last fall, CEO Mike Hoque noted “unforeseen cost escalations and market turbulence that have shelved many projects across the country.”
City officials have since proceeded with other downtown projects while preparing to re-enter talks with Hoque. Moore said the new agreement would need to ensure the project is truly shovel-ready. “We want to do a deal where the project would be ready for construction in 30 to 60 days,” he said.
— Judah Duke
Read more
Fort Worth drops Hoque Global as Southside urban village developer
Hoque sets construction start date for University Hills
Riverwalk canal stars in Stillwater’s Mansfield development
