One Lakewood Place Developer Plans To Abandon Project, City Says

LAKEWOOD, OH — Carnegie Management and Development intends to withdraw from its agreement to build One Lakewood Place, the mixed-use project at the heart of Lakewood's downtown corridor, according to Mayor Meghan George. City officials said the company is pulling out after months of negotiations on modifications to the project.

Mayor Meghan George will place an item on Lakewood City Council's agenda for Monday announcing the development. The notice, obtained by Patch, says the city is disputing Carnegie's basis for terminating its deal but will work to find an amicable conclusion to the agreement.

In a statement released on Friday, George said the deal fell apart because of financial disagreements. Carnegie, she said, struggled to produce a financial package to complete the One Lakewood Place project.

"Carnegie has laid blame on the City, citing an alleged failure by the City to timely satisfy the site work conditions in the DUA. Carnegie has provided no evidence to support this allegation or its unfounded claim that Carnegie is entitled to reimbursement," George said. "These claims are inappropriate and unjustified, and a violation of the trust of the people of Lakewood. While I had hoped for an amicable parting of the ways with Carnegie, I will not be intimidated by Carnegie’s illegitimate claims."

She added that no city can rival Lakewood's vibrancy and density, making it a unique market for developers. Other developers have already shown interest in the site, George added.

Councilperson At-Large Tom Bullock also confirmed news of Carnegie's impending departure. He said the news caught him off-guard, but he expects city council and George's administration to work together to salvage the One Lakewood Place project.

"We need to hit pause and reaffirm our goals for One Lakewood Place," Bullock told Patch. He said officials should not lower their ambition for the site. "We don't want to just throw up a strip mall. We can't just take the first tomato out of the box."

Bullock said he was saddened by Carnegie's decision to depart because city officials and company representatives had worked diligently to match the project with resident desires. He said he hopes the next developer will not entirely abandon Carnegie's legwork.

One Lakewood Place was an estimated $72 million project that would convert the former 5.2 acre Lakewood Hospital site into a mix of residential units, office space, and shops.

Patch has reached out to Carnegie Management and Development for comment. We will update this story should they respond.