Stilo Stonewalls Promise To Donate Land For Affordable Housing
July 27, 2013
By Mike Scerbo
Tusayan is no closer to getting free land for affordable housing than it was two years ago when it signed a development agreement with Italian developer Stilo.
Another executive session was held July 24th in which the Tusayan Town Council looked at its options after declaring Stilo in default.
In exchange for rezoning that could make Stilo millions, the Town was promised 40 acres of land for affordable housing. Stilo also promised to identify a water supply.
Stilo had plans for three million square feet of commercial space and wanted to add thousands of new homes.
However it can’t cash in until it makes good on its promises. It continues to change the rules and that isn’t sitting well with the Town. It wants to be released from its obligation to demonstrate a water supply. Stilo also wants the Town to eliminate a reversion clause before handing over 20 of the 40 acres promised. Eliminating the reversion clause would rob the Town of its ability to enforce the development agreement if Stilo tries to alter the deal any further.
After an hour long executive session, Mayor Greg Bryan announced, “After executive discussion we directed, gave staff and the negotiating committee to to continue the process.” Town Manager William Wright noted that, “Staff is the Town Attorney.”
After the council meeting we asked Mayor Bryan how are the negotiations going. He replied, “The discussions on a possible amendment to the PAD (Planned Area development) are continuing.”
If negotiations continue to go nowhere, the town would be within its rights to scrub the development agreement, which has been opposed by the Superintendent of the Grand Canyon national park, The Grand Canyon Trust, the Sierra Club, and the Havasupai Tribal Council.
Stilo has considerable resources and its team knows how to go on the attack. Just ask some of the people who publicly opposed the development agreement.