No rush on Riverbend; State sets 2010 deadline

WALLS - Riverbend officials insist the $2.7 billion Riverbend Crossing development near Walls remains on track, despite the slow-down in the national real estate market.

"I've stayed in contact with them," State Sen. Doug Davis, R-Hernando, said Monday, referring to California developer Bill Phillips, the principal developer behind the Riverbend project, and his development team. "They're aware of the national economy but they've given me no indication that they are doing anything but moving ahead on the project."

Davis said Riverbend developers still do not have all 4,500 acres needed for the project.

"To my knowledge they have not yet purchased all the property," Davis said.

Davis is the legislative liaison for the project and helped orchestrate the special session of the Mississippi Legislature last August to provide up to $173 million of incentives to the developers to locate the project in the Walls area.

So far only 60 acres of the 4,500-acre development has been purchased for the proposed upscale residential community and entertainment development on the banks of the Mississippi River.

Riverbend developers have sought option extensions on about 200 acres of the 4,500 acres required for key portions of the project.

Approximately one-fourth of the Riverbend property involves land currently owned by Entergy.

Aspen Investments, LLC, owns the lion'share of Riverbend property or more than 2,200 acres purchased from Prudential in late 2005. The sole owner of Aspen Investments, LLC is Jennifer Smith, a resident of Jonesboro, Ark.

The land deal to acquire all 4,500 acres of the Riverbend property is estimated to cost $35 million.

Technically, Riverbend developers say they met a state imposed June 1 deadline by securing just enough land to begin engineering and exploratory work. A subsequent State Attorney General's opinion joined an opinion by Mississippi Development Authority officials that California developer Bill Phillips and his team had met the deadline.

"Their next deadline, as far as the state is concerned, is 2010," Davis said.

By 2010, the Riverbend project needs to be well under way, according to agreements signed by developers and state officials.

About four months ago, a financial firm in New York representing Phillips allegedly pulled out of the Riverbend deal.

In September, Phillips and his development team had selected another financial lender for the project.

The Mississippi Legislature approved $23 million in infrastructure funds to construct utilities, roads and bridges to the Riverbend site.

According to the state's negotiated deal, the $23 million in funds were off the table if developers didn't begin construction by June 1. The Attorney General's opinion, rendered after that deadline passed, has settled that issue, at least for now.

Riverbend has proposed building a $30 million state-of-the-art aquarium, three luxury hotels and four signature golf courses among other amenities. Developers plan to build more than 9,500 homes on the site. Additionally, commercial shops also are planned. Walls officials anticipate 30,000 new residents by the time the project is completely built out within 10 to 15 years.