Statement by Campus Partners and The Druker Company, Ltd.

July 5, 2002

Campus Partners for Community Urban Redevelopment, Inc. of Columbus, OH, and The Druker Company, Ltd. of Boston, MA, today announced their joint decision to have Campus Partners assume the primary responsibility for managing the development of University Gateway Center.  University Gateway Center is a proposed new, 450,000 s.f. urban mixed-use development (including restaurant, retail and entertainment uses; apartments and office space) which will be located on North High Street in the University District. 

The evolution of the project over the past three years has led both Campus Partners and The Druker Company to conclude that the implementation of the University Gateway Center would be most appropriately undertaken by Campus Partners with the assistance of a fee development service provider.  Among the factors that now make the fee development services model a more appropriate mechanism than a land-lease to a developer or a joint venture are the likely increased utilization of the space in the Gateway Center for university-related purposes (such as housing for students of the Moritz College of Law) and the ability of Campus Partners to access less expensive tax-exempt financing for the Gateway project.  Unfortunately, The Druker Company, like many development companies, does not provide development services on a fee basis and, therefore, will discontinue its involvement with the Gateway Center.  

The Druker Company, Ltd. was selected as the preferred master developer by Campus Partners in May of 1999 (very early in the site assemblage process) following a development competition in which ten development teams initially competed.  Since that time, Campus Partners and Druker have individually and jointly made considerable progress in moving the project forward, while Campus Partners continued with acquiring properties and relocating businesses in the redevelopment site.

Campus Partners recently completed site assemblage and is now clearing the 7.4-acre project site on North High Street.  It was responsible for the community-based planning process that refined the initial proposal for the Gateway project upon which the development competition was based.  Campus Partners has been key to garnering support for the project from the Ohio State University community, the City of Columbus and University District residents and businesses.

In the meantime, The Druker Company completed detailed traffic and parking studies required for project approvals, oversaw utility relocation and other public improvements planning and completed other necessary pre-development activities.  In addition, The Druker Company has generated interest from numerous national, regional and local food, apparel, and entertainment retailers.  The Druker Company also negotiated and executed a long-term lease agreement with Barnes and Noble College Bookstores, Inc., to operate the planned 50,000 s.f. combined Ohio State University and Long’s Bookstore.

Campus Partners will quickly engage the services of a development consultant to assist it in carrying out the University Gateway Center development concept originally proposed by The Druker Company.  Both Campus Partners and The Druker Company expressed confidence that University Gateway Center will become a national model for university-sponsored urban reinvestment.

“We are pleased to have played a role in defining and advancing this important project,” said Ronald M. Druker, President of The Druker Company, Ltd.   “We are confident that Terry Foegler and his colleagues at Campus Partners and The Ohio State University will realize the tremendous potential of University Gateway Center and make it a successful development and an important new destination in the University District.”

Terry D. Foegler, President of Campus Partners, said:  “We greatly appreciate the leadership and guidance provided by The Druker Company in bringing the Gateway project to this critical juncture.  The design and development concept initially proposed by The Druker Company was widely embraced by our community’s many stakeholders, and this concept will continue to provide the foundation for this project as it moves toward implementation.”  Campus Partners intends to move the Gateway project forward in a timely fashion, using many of the key development team members assembled by The Druker Company.