The renovation of downtown Durham's Chesterfield building, which was originally expected to begin back in April, has been delayed again.
Josh Parker, the developer behind the project, said in an email today that the closing of the $63 million in stimulus bonds being used to finance much of project won't occur until Sept. 30.
Chesterfield Partners, Parker's company, can't take ownership of the building until the closing occurs and the bonds are sold to investors as long-term notes with a fixed interest rate.
Parker said the delay wasn't caused by the company's inability to get the terms it wanted for the bonds.
"There were some things going on outside of our control that caused a last minute delay despite most everything being ready for a closing on June 30," he said. "The September 30 date is the next best date we could get with efficiency to get all the pieces ready on the same day and steer clear of how summer affects Wall Street.
Chesterfield Partners rolled bonds in to a new escrow period with an interest rate of .40 percent, Parker said.
"This is a low interest rate that doesn't materially change the overall budget and a cost we can absorb," he said.
The fixed interest rate on the bonds will dictate how profitable the deal ends up being for Chesterfield Partners.