Brett/Robinson, for the Phoenix West II condominium project in Orange Beach, Alabama, said today that after several months of discussions, they have reached an agreement with British Petroleum (BP) to provide a $37.2 million cash payment to the Phoenix West II project. This represents a major economic development project for the area which, once completed, will result in significant tax revenues for both state and local government.
“This project will bring significant economic benefits to the region and our State,” said Governor Bob Riley, First District Congressman Joe Bonner and Orange Beach Mayor Tony Kennon in a joint statement. “The estimated direct and indirect economic impact of this project to this region and the State of Alabama is considerable during construction and the project will generate millions annually. Its completion will serve as a bold statement that the sandy white beaches of the Gulf region remain vibrant and healthy and are poised for a very bright future. This is a step in the right direction and we look to Brett/Robinson now to see the project through to completion.”
U. S. Senator Jeff Sessions said, “I am happy that this agreement has been reached. I believe it will be an important step for the recovery of the Alabama Gulf Coast.”
Tommy Robinson, Gene Brett and Tillis Brett, principals of Brett/Robinson said, “This ends BP’S participation in the project. As a leading condominium developer and property management company in Orange Beach, Brett/Robinson stands behind this project. With pre-sales and continued sales of condominium units, equity from the Brett/Robinson principals and BP’s cash payment, we will ensure that Phoenix West II is completed by year-end 2012 and we expect nothing further from BP.”
Brett/Robinson said the agreement requires releases from all parties associated with the project, including Brett/Robinson, its affiliates and all current condo purchasers and their lenders. “There will be no payment from BP until these releases are obtained. We are working on obtaining the releases and expect to obtain them in the coming weeks. Our target date for consummating the agreement is December 31, 2010.”
Phoenix West II is a 358-unit, approximately 1.9 million square foot ocean front luxury condominium building. It is one of the largest condominium projects in Alabama. “This unique project is the only high-rise condominium project under construction, to my knowledge, on the Gulf between Texas and Florida. It is critical for our Coast and the State of Alabama,” said Governor Riley. “Right after the oil spill, BP began exploring ways to assist the project because of its importance to the entire state and I am pleased with the outcome.”
“The process of completing Phoenix West II will result in many new construction jobs in Orange Beach, “ said Mayor Kennon. “Once completed, the project will generate considerable annual property and lodging taxes, creating new full time and seasonal jobs. Its completion and sell-out will further stabilize the condominium market on the Gulf Coast and will assist in enhancing property values in Baldwin County. I am pleased BP is meeting its commitment.”