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Council postpones decision on developer’s $2M bond debt
by Joshua H. Silavent
Apr 12, 2011 | 1670 views | 0 0 comments | 4 4 recommendations | email to a friend | print
Tribune/Dan McGee - At Monday’s meeting, the Sparks City Council delayed its decision on a request by the developers of the Casoleil Condominiums to be relieved from a $2 million bond obligation. Less than half of the 270-condo development has been completed because of the company’s financial hardships in the midst of the recession.
Tribune/Dan McGee - At Monday’s meeting, the Sparks City Council delayed its decision on a request by the developers of the Casoleil Condominiums to be relieved from a $2 million bond obligation. Less than half of the 270-condo development has been completed because of the company’s financial hardships in the midst of the recession.
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SPARKS — A decision on a request by developers of the Casoleil at Spanish Springs condominium properties to have performance bond obligations of more than $2 million removed because of financial hardships has been delayed for at least 30 days while alternatives are considered.

The City Council voted unanimously on Monday to continue a hearing on the matter at its May 9 meeting.

Planning officials have recommended the council deny the request in accordance with municipal code requirements. They also said granting the request could place the city at financial risk.

Less than half of the 270-condominium project has been completed since its initial break-ground date in 2005, a result of the economic recession and cash flow constraints.

On Monday, developers Galleria Station, LLC conceded that an alternative proposal that would relieve bonding requirements by placing a deed restriction on the property might be the only way out.

But the developer prefers simply removing the bond obligation in order to avoid having to essentially revisit the entitlement process that permits construction.

Mayor Geno Martini said he was willing to do what it takes to help the developers without jeopardizing the city’s own welfare and interests.

Councilman Ron Smith echoed this sentiment.

“We don’t want to lose you,” he said.

In a letter to the council, developers said they have spent more than $33,000 in premium payments on the bonds, which include site work and landscaping obligations.

Developers have indicated that the remaining elements of the project are not likely to be finished for several years because of the fiscal straits in which they find themselves.
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