A major developer on the Alabama coast will receive $37.2 million from oil giant BP to settle claims over the impact the Gulf of Mexico oil disaster had on the company’s large beachfront luxury condominium development.
The deal came after months of negotiation between BP and the real estate developer, Brett/Robinson, which has been developing the 31-floor Phoenix West II condominium at Orange Beach.
Brett/Robinson’s law firm, Hare, Wynn, Newell and Newton, said the agreement requires releases from all parties associated with the project, including current condo purchasers and their lenders. The target date for consummating the agreement is Dec. 31.
BP says it has paid more than $657 million for claims and recovery costs in Alabama from the oil spill.
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.
The developers and officials said the project is a major economic development initiative for the area.
“This project will bring significant economic benefits to the region and our state,” said Gov. Bob Riley, U.S. Rep. Joe Bonner and Orange Beach Mayor Mayor Tony Kennon in a joint statement. They said the project will generate millions of dollars annually in direct and indirect economic benefits.
“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,” the statement from the three elected officials said.
Brett/Robinson said it hopes to finish the condo project by the end of 2012.
“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 Gov. 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.”
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