This is getting ugly...I might need to move out of town...maybe we will have a grapes of wrath II, except this time we go back to Oklahoma...
From the Bakersfield Californian:
A trio of large developments in northeast Bakersfield have defaulted — two of them from the master developer of the City in the Hills project, county records show, continuing to a string of such troubles in Kern. More than $26 million was past due on the three loans.
Here are details:
Three loans made by Indymac Bank to subsidiaries of City in the Hills’ master developer defaulted Thursday.
• A $19.8 million construction loan to S & J Alfalfa Inc. for about a square mile at the southeast corner of Highway 178 and Morning Drive. More than $9.7 million was owed as of July 29, the default notice said. The loan was made in December 2006.
• A $9.8 million loan to SKY 21 LLC for about 3/4 of a square mile on the east side of Masterson Street, at the southeast corner of its intersection with 178. More than $7.4 million was in arrears as of July 29 on the loan made in October 2006.
• A $17.9 million construction loan to Sycamore Villas Development LLC. More than $1.9 million was owed as of July 29. The loan was made in January 2007. All loans were signed by then-president Dennis A. Harris, records show. Indymac, based in Pasadena, was seized by federal regulators in July. Last month, another related company, MVB Ventures LLC, defaulted on a tract in City in the Hills known as Juliana’s Garden. Los Angeles-based Mountain View Bravo LLC is the master developer of nearby City in the Hills, on the north side of 178.
• Another northeast parcel defaulted Wednesday. Monte Carlo LLC defaulted on a $15.4 million construction loan from County Bank in Merced. Developer Terry L. Moreland owed more than $9.1 million as of Aug. 12 for the December 2006 loan against 105 acres near the northeast intersection of 178 and Alfred Harrell Highway
Federal regulators last month entered into a written agreement with County Bank requiring better lending oversight and disclosure of problem loans.
• In southwest Bakersfield, the Destefani family defaulted last week on a $3.6 million loan from Bakersfield-based A-C Electric Co. on about 143 acres at the northeast corner of Taft Highway and Old River Road. The area has plans for residential and commercial development, though the lot is currently agricultural land. More than $2 million was owed as of July 31, the default notice showed.
I assume the Nascar race track is dead now that the Destefani family is defaulting on their debts and begging for investors?