Company cancels plans for luxury theater at Columbia’s BullStreet complex

Developers of the former State Hospital campus on Bull Street say the exit of a luxury theater complex from the project is part of the “ups and downs” of commercial development and shouldn’t have an affect on the long-term redevelopment of the 181-acre campus.

Cobb Theatres terminated its lease Jan. 19 after the company failed to reach a parking agreement with Hughes Commercial by the end of 2016, said Cobb’s chief operating officer, Frank Stryjewski.

Hughes Development chief operating officer Robert Hughes said a theater is still in the plans and negotiations with another tenant are ongoing. He added that most new theaters are embracing the luxury concept.

“We’ve known about this for quite some time and we’re not worried about it at all,” he said. “Whatever reason Cobb is using (for pulling out) is not a concern at this time. This means new opportunities for our retail development partner.”

Hughes Development is leading the State Hospital redevelopment — called BullStreet — under an agreement with the city of Columbia. A city-funded minor league baseball park and a privately-built four-story office building have been completed.

At-large Columbia City Council member Howard Duval called the parking issue “an excuse” for Cobb to pull out. He added the city has the bonding capacity for the two parking garages slated for BullStreet and the bonds should be issued before July 1. Under the agreement with Hughes Development, the parking garages are to be built once Hughes meets specific benchmarks.

“This is not a huge blow, but it is a disappointment,” he said.

Hughes added that the company has qualified for one of the parking garages already, but doesn’t need the garage until construction of The Commons at BullStreet retail complex begins.

“BullStreet has always been and will continue to be a 20-year project and we are in year three,” Hughes said. “We are ahead of schedule. To do this right, it will take a long time and be full of ups and downs. And ups and downs are common in every development project.”

Cobb had planned to open a 10-screen theater complete with an upscale bar and restaurant as part of a much larger planned retail development at the old State Hospital campus. The theater complex was scheduled to built beginning this year in tandem with The Commons at BullStreet retail complex.

Stryjewski said delays convinced the Alabama-based company’s board to move on to other projects in Atlanta, the Washington, D.C.-area and Birmingham, Ala..

“We decided to go ahead with things we knew were going to happen faster,” he said.. “They (Hughes Development) are continuing to work with the overall project. We chose a bird in the hand.

“It’s a good opportunity for a theater,” he added. “But the timing for us didn’t play out ideally.”

The construction of the four-story First Base Building office facility by Hughes Development next to Spirit Communication Park qualifies The Commons for the city-built parking garage. The Hughes Development team, which includes Hughes Commercial Properties, has said that construction of the entire retail complex should begin this year, although retail announcements other than Cobb have been non-existant.

The kickoff of the retail construction would trigger the building of a second city-owned parking garage; but Hughes on Wednesday wouldn’t lay out a timetable for when the garages would be built.

“We will build the (parking) structures as we build the project around them,” he said. “But any announcements will have to come from the retailers.”

Hughes added: “The city has fulfilled all of its obligations.”

The redevelopment of the old State Hospital’s 181-acre campus is considered the biggest land deal in Columbia history — one that could transform a downtown that is already in a state of incredible growth. The retail area is located on the northwest side of the sprawling campus, covering about one-fifth of the property.

Hughes Development owner Bob Hughes, considered the architect of Greenville’s downtown revival, is the master developer. He is either building projects at BullStreet himself or farming out land to other developers. Robert Hughes is his son. Jackson Hughes, owner of Hughes Commercial Properties, is Bob Hughes’ cousin.

Hughes Commercial Properties is advertising The Commons at BullStreet as a mixed-use development that “will encompass high-end retailers and eateries, an upscale cinema, boutique and conference hotels, residences, premiere office space, student housing and other potential sports and entertainment venues.”

Plans call for The Commons to include 413,850 square feet of retail, 3,500 residential units, 1.3 million square feet of office space and a 170-room hotel.

This story was originally published January 25, 2017 at 1:05 PM with the headline "Company cancels plans for luxury theater at Columbia’s BullStreet complex."