Monday, December 29, 2008

FLASH--Summit 1031 Bankruptcy Petition

Just received a copy. Here is the link. Right-click to download and save.

Couple of notes on first read:
1) It is dated 12/19/08, after the initial 12/15/08 statement.

2) The retainer was $275,000 or $250,000. It's unclear, as one clause says Sussman Shank has received $275,000 before the filing, and another states "...retainer in the sum of $250,000."

3) Of the 20 largest unsecured debts, all from unfinished exchanges, only three are from Oregon: the Tennant's in Portland, $; Home Valley Bank in Grants Pass, $547,936.88; and the Miller's in Bend, $756,598.82. The other 17 are scattered around the west.

4) A rough tally of the total owed to the top 20 creditors is $21,560,550. The largest creditor is the Alessandro Family Trust, from Rancho Santa Fe, CA, at $2,999,961.

5) The four principals-Neuman, Stevens, Lyon, and Larkin-each own 25% of the company.

The matrix of debtors is not included, so there is a lot more not shown. I'll try to get it from the court.

After I run OCR on the filing I'll update the download with a copy that is searchable.

Many thanks to Ryan Frank at the Oregonian for forwarding this to me. He has a copy and a post about it on his blog as well:

More Layers Of Management Coming For JR

From the Bend Bulletin:

Manager sought for Juniper Ridge

Bend hoping to find development specialist for project

With a large amount of infrastructure work to complete, ongoing transportation-related holdups and a second business set to move in, Bend officials are looking for some outside help with the commercial development of Juniper Ridge.

Currently, the city’s 1,500-acre project in northeast Bend is managed by a large and sometimes confusingly structured group of people that includes the Bend City Council, city officials, the project’s former master developer and the Juniper Ridge Management Board, a five-member volunteer group of residents with experience in business, development and government.

But now, city officials are looking to bring in another person to serve as Juniper Ridge’s development manager, a contract position city officials said will be key in helping to organize future land deals with businesses interested the project and oversee other elements of its development...

This will be the fourth or fifth group brought in to move JR forward, depending on if you count the Juniper Ridge Management Board (JRMB). We are still paying Juniper Ridge Partners i.e. Ray Kuratek and Jeff Holtzman (JRP) 6% of every sale of the first 50 acres sold beyond the 20 acres that Les Schwab bought and optioned, per the Option Agreement. This is on top of the $2,515,000 paid to JRP for turning over the Master Plan they developed with Cooper-Robertson.

Three firms were interviewed on a full blizzard of a day in Bend: "James “Jim” Carnahan, a Bend development manager and engineer who formerly worked with David Evans and Associates; Dike Dame, the president of Williams & Dame, the Portland firm that developed the Broken Top golf resort; and David Ditz, a Colorado-based development company owner."

According to John James, Chair of the JRMB:
“The city wears two hats — the city’s normal situation is the regulator, which they do well, and also the developer, and they don’t do that as well,” James said.

“The idea is to get someone independent, from the development community to report to Eric (King) and this board and try to get all the infrastructure and entitlement issues taken care of, which are significant in 2009.”

City manager Eric King indicated the Development Manager would be paid from money budgeted for Juniper Ridge operations.

Due to the blizzard, I stayed home after seeing five accidents within six blocks of Brookswood. More when I speak with Mr. James and read the meeting minutes.

Unfortunately the minutes will probably not be available until after the selection vote by the City Council.