PROJECT RESCUE PLANNED $1 MILLION FUND PROPOSED.Byline: Jim Skeen Staff Writer PALMDALE - As part of a proposed settlement to revive the Ritter rit·ter n. pl. ritter A knight. [German, from Middle High German riter, from Middle Dutch ridder, from r Ranch project, the city, a major bondholder and the new developer will create a $1 million fund to pay legal expenses of the company that took on the 7,200-home development then filed for bankruptcy. In preparation for a bankruptcy hearing this week, the City Council will consider on Wednesday an amendment to a new development agreement that would create the $1 million fund. The Franklin Fund, the primary bondholder on the Ritter project, would contribute $500,000 and Newport Beach-based Sage Community Group and the city would each provide $250,000. The city's share would be reimbursed through a reserve account for the bond issue, which was created to pay for storm drains storm drain n. 1. A storm sewer. 2. A catch basin. , streets and other improvements for the property. None of the legal claims would be paid by city funds, officials said. Under a tentative agreement, Ritter Ranch Development LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control will not contest a city-backed plan to turn the project over to Sage. That would free Sage to begin developing the project, perhaps as early as June. ``The modified city plan if implemented will provide for a new developer to commence work on the Ritter Ranch project, remove RRD RRD R.R. Donnelley RRD Round Robin Database (a system to store and display time-series data) RRD Removable Rigid Disk RRD Rhegmatogenous Retinal Detachment RRD Radio Regulatory Department RRD Regimental Reconnaissance Detachment (the developer) and all affiliated persons Affiliated Person An individual who is in a position to influence the actions of a corporation. This includes people such as directors, executives, and owners. Notes: Depending on the context, an affiliated person might be referred to simply as an "affiliate. and entities from the project, resolve all the litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. filed in the bankruptcy case (and that which is on appeal) and reimburse the city for substantially all its bankruptcy and plan-related attorney fees and costs,'' City Attorney Matt Dizhazy wrote in a staff report to the City Council. The city-backed recovery plan is scheduled for a confirmation hearing in a federal bankruptcy court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. in Woodland Hills beginning Wednesday. ``Our responsibility is, No. 1, to show a commitment to the bondholders and, No. 2, bring in a developer that can do the job,'' Palmdale Mayor Jim Ledford said. The recovery plan calls for Sage to pay $7 million in cash to the bankruptcy estate and provide a letter of credit for $10 million to the Franklin Fund, which holds $33 million in bonds issued for improvements to the Ritter Ranch property. Sage would also bring up to date back payments that Ritter Ranch Development has missed on the bonds. Sage would be responsible for future bond payments, the first of which is due in June. Ritter Ranch was envisioned as a state-of-the-art, master-planned community, but its original developers - a company formed by Lorimar Telepictures executives Irwin Molasky Irwin Molasky is considered a pioneer and one of the most important people in the development of Las Vegas. He built Las Vegas' first enclosed mall, the Boulevard Mall; first major hospital, Sunrise Hospital & Medical Center; first high-rise condominium, Regency Towers; the and Merv Adelson - lost it in a foreclosure foreclosure Legal proceeding by which a borrower's rights to a mortgaged property may be extinguished if the borrower fails to live up to the obligations agreed to in the loan contract. by their lender in January 1997. Palmdale, which is administrator of the $50 million bond issue for the project, began its own foreclosure proceedings in May 1997 against the lender, Bankers Trust The Bankers Trust is a historic American banking organisation that was acquired by Deutsche Bank in 1998. It was originally set up when banks could not perform trust company services. . In May 1998, a settlement agreement was reached to hold off foreclosure proceedings and allow Bankers Trust to find a developer to take on the project. That resulted in Ritter Ranch Development, and its principal John Musick, stepping in in August 1998, under an agreement with the city that required the company to make payments on the bonds. Musick said he planned to start building homes in September 1999 and actually began an ad campaign seeking potential home buyers, but no work has occurred. In addition, no payments were made on the bonds. Ritter Ranch Development filed for Chapter 11 reorganizing protection in federal bankruptcy court in October 1998. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion