Remember when the "Shark" came to Bakersfield? Things looked so promising for McAllister Ranch, if you believed all the hype. This project is out in the middle of nowhere. What were these people thinking? Chalk this one up to another developer who believed the hype and is now in deep trouble.
Also, look for Standard Pacific (according to numerous report), to file for bankruptcy protection very soon. The smartest guys in the room, in this case were from Probuilt Homes. They shoved all this land up SPF's back side and walked away with millions. Meanwhile SPF's stock has gone from $50 to $1. More out of town developers who thought they were the smart money, who turned out to be pretty dumb! Notice these guys are also from Orange County.
Bakersfield Californian:
The developer, Irvine-based SunCal Cos., is “adjusting” its construction plans,
a company spokesman said Friday.When homes will appear — and when McAllister’s showcase golf course will open for public play — remains up in the air amid a lawsuit and a smattering of liens filed against the developer. “We previously had a very aggressive, accelerated construction schedule, but with the current challenges of the housing market, it has become necessary to adjust our timelines,” SunCal spokesman Joe Aguirre said.
Two years ago, SunCal predicted residents might move into the planned 6,000-home community by the end of 2006. As recently as September, the golf course was slated to open in the first three months of 2008.
The Greg Norman-designed golf course at McAllister Ranch is now at the center of a lawsuit seeking to recover $830,530 in allegedly unpaid bills.
As of Thursday, contractors, subcontractors and building supply companies involved with work at the McAllister Ranch property had filed at least 24 mechanic’s liens against SunCal and its affiliate, seeking more than $2.2 million for construction services and supplies, Kern County Recorder’s office records show.
“I understand the developer has shut down the whole project,” said Mike Garcia, owner of Garcia Roofing. Garcia’s company was hired by Bakersfield’s Klassen Corp. to do the roofing for McAllister Ranch’s golf clubhouse, he said.
Garcia finished the roof, but is out $61,980, he said.
“I’ve never lost out on anything this big,” said Garcia, who said he has been in the local construction business for 32 years.
He said he believes the developer failed to pay Klassen Corp.
9 comments:
Hey Hanzie - what happened to this project? I thought this was a "sure thing"? LMFAO!!
FIASCO! I told you so... see my comment from january 6th :) There are more shoes to drop on this one...
There are always more shoes to drop in these situations. Recalling back to the early 90s, I was involved in a similar one. Good news for mechanics lien claimants was there was a loss in priority, meaning that work started before the construction loan was recorded. Because of the "relation back" nature of mechanics lien law, the priority date of all mechanics liens was the date construction started. One title insurance company had to write a lot of checks. Let's hope the same is true here. Otherwise a lot of lien claimants are going to be hurt and probably go out of business as their lien is eliminated as a result of foreclosure of the construction loan.
You were on the money hank!
Gand Canal, Norman Golf,what next
Could it be Mills Creek
Is Suncal planning to build homes themselves rather than sell lots? That was the rumor a few months ago because they were so far in the hole with their land holdings. Anyone know?
I'm guessing there is going to be a bankruptcy by suncal in calendar '08. There are way too many lots out there to be absorbed in this market even in good times.
If I read the article correctly, Klassen Corp. hired Mike Garcia, not Standard Pacific.
Klassen owes Garcia full payment, regardless.
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