1156 15th Street, NW
Suite 850
Washington, DC 20005
Robert H. Zeiller (202) 822-4900
Regional Vice President, Mid-Atlantic FAX (202) 822-4912
Mr. Timothy C. Cox
Chief Operating Officer
Armed Forces Retirement Home
3700 North Capitol Street
P.O. Box 1303
Washington, DC 20011-8400
Subject:Armed Forces Retirement Home Cost Reimbursement
Dear Tim:
Thank you for taking the time to discuss the status of the AFRH project. I appreciate your candor and consideration. As you know for months since your decision and announcement to terminate negotiations with Crescent we have relentlessly attempted to re-engage in meaningful discussions. Our sincere hope is that both parties could come together and deal with the extraordinary market challenges that we now face fairly and in the long term best interest of the project. One could argue that it’s best to face these extraordinary challenges head on at the outset of the project rather than in the middle with less flexibility. However, based on our phone conversation that light appears to be fleeting. It now appears that you are unwilling to re-engage in meaningful discussions and that you have elected to proceed with Crescent Resources’ approved plan but without Crescent Resources.
Words don’t express the appropriate frustration and disappointment in that decision.
Unfortunately, since it appears that there is no real opportunity to participate in future development and recapture our investment we are left with no other potion but to requesting reimbursement.
As you are well aware Crescent Resources, in good faith, often at the explicit request of your development team, invested significant human and financial resources towards the development and approval of the AFRH Master Plan. I am confident that the record clearly shows Crescent’s effort was not only necessary but critical to the success of the master plan effort. The result of our effort is an approved Master Plan that unquestionably adds significant value to the AFRH property.
Attached is an invoice that details the cost of all work, occurring after the selection of Crescent as Developer, directly related to the development, negotiation and approval of the master plan. Please note that we have not requested reimbursement for “pursuit costs” directly related to the year long “competition” or legal fees directly related to the lengthy negotiation of the agreements. We do consider a proprietary interest in the documents generated collaboratively during the negotiations. The reimbursement request is for work product that we expressly commissioned after the award and is a material part of the AFRH Master Plan.
Tim, I would much prefer to be at a negotiating table figuring out how we as a group can move the project forward but in light of our discussion feel that at this time we are left with no other option.
I trust that you will see that this matter will be resolved fairly and quickly. If you have any questions or would like to discuss this matter further please do not hesitate to call me.
I sincerely wish you and all the men and woman associated with the Armed Forces Retirement Home success in your future endeavors.
Sincerely,
CRESCENT RESOURCES, LLC
Bobby Zeiller
Regional Vice President, Mid-Atlantic
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