Lennar files for bankruptcy at Mare Island
Just as folks in San Francisco are beginning to wonder if Lennar is planning to mothball the Hunters Point Shipyard in face of a $25 million funding gap (reportedly related to lowered land prices), comes word that folks in Vallejo are beginning to wonder what Lennar Mare Island’s June 8 bankruptcy will means for their city's already strained finances.
On Sunday June 8, Lennar Mare Island LLC, which has been involved in redeveloping the former naval station at Mare Island for eleven years. petitioned for a Chapter 11 bankruptcy, along with its parent company LandSource and 19 other Lennar-related subsidiaries.
The move came several couple of months after LandSource defaulted on a $1.24 billion loan--and five days after the June 3 election, in which Lennar Homes of California spent $5 million to pass Prop. G, which gives it the right to develop luxury condos at Candlestick Point, as well as at Hunters Point Shipyard.
The potential consequences of Lennar and LandSource’s bankruptcy are noted at Lennar’s website.
As Lennar’s Vice President and Chief Financial Officer Bruce E. Gross wrote, June 12, “We own a 16% limited partnership interest in LandSource. We also have a management agreement with LandSource and options to purchase land and other assets from LandSource. The bankruptcy filing could result in a substantial reduction (or total elimination) of our interest in LandSource, loss by LandSource of some or all of the properties it owns, termination of our management agreement with LandSource and land purchase options we have been granted by LandSource and loss of amounts owed to us by LandSource, and could expose us to claims.”
Listed in the LandSource bankruptcy petition are LandSource Communities Development, LLC; the California Land Company; Friendswood Development Company,LLC; Lennar Land Partners 11; Kings Wood Development Company, LLC; LSC Associates, LLC; Lennar Mare Island; Lennar Moorpark, LLC; Lennar Stevenson Holdings, LLC; The Newhall Land and Farming Company; LandSource Holding Company, LLC; LNR-Lennar Washington Square, LLC; Lennar Bressi Ranch Venture, LLC; Tournament Players Club at Valencia, LLC; Southwest Communities Development, LLC; Valencia Corporation; Stevenson Ranch Venture, LLC; and the Valencia Realty Company.
LandSource reportedly received a default notice on April 22 after it missed a payment, following a decline in assessed value of a Southern California land holding triggered additional charges. The company took part in failed negotiations to restructure its debt, then filed for bankruptcy.
The Vallejo Times Herald quoted Vallejo’s Vice Mayor Tom Bartee, as saying that Lennar Mare Island LLC has assured officials that environmental cleanup and infrastructure improvement projects will continue, but concerns exists.
"There is some optimism that they'll be able to work through it, but how long that may take, remains to be seen," Bartee told the Vallejo Times Herald. "I'm hopeful that they're able to continue to develop the island... I don't think people are looking at (a new developer) at this point... Looking at the economy right now, I wouldn't think you'd have too many other people who would be jumping at the chance for land acquisition."
Here in San Francisco, Lennar Urban executives insist that they are committed to moving ahead with a massive condominium project at Hunter’s Point Shipyard in San Francisco, although public records suggest otherwise and cast serious doubts as to whether Lennar has the financial wherewithal to develop the Shipyard and Candlestick.
The Shipyard/Candlestick Point project encompasses 770 acres of land, and projects the development of 10,000 homes, 300 acres of open space and 8,000 new jobs.
Lennar Mare Island encompasses 650 acres of land and projects the development of 1,400 homes and 7 million sq. ft of commercial/ industrial space.
Barclays Bank has given Lennar Mare Island LLC a $135 million line of credit to help fund operations during its Chapter 11 process.
On June 10, Vallejo City Manager Rob Stout reportedly told the city council that a $6 million municipal service fund, which Mare Island taxpayers contribute toward and which LMI pays half of, could suffer. And Councilman Michael Wilson told the Vallejo Times Herald that the, “city's part in LandSource's bankruptcy process will include continuing to transfer the former U.S. Naval base land still held by the government to private ownership, and moving development permits along so that new businesses may locate in Vallejo. “
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Comments (5)
Roosting Chickens Shit On The Golden Dome.
In the last few days Lennar has announced that it can't afford to build parks and sidewalks as part of their Massa Plan for the Bayview, and have now declared bankruptcy on Mare Island !!!
A week or so ago 84,000 people were duped into voting for Prop G and giving Lennar control of even more city land, what a farce.
Who is responsible for this debacle. Top of the list are most of our elected 'representatives. Lying;Duplicitous;Ignorant;Venal;Corrupt;Myopic;Lazy;Criminal or just plain Stupid. One or more of these adjectives applies to the following sorry SOB's.
Newscum;Muckswell;Pesky;Petty-Pier;Hellsburned;Ha-Ha;Duffy and McGoldbrick. All these sad excuses for people's representatives cast votes on Tuesday May 23rd 2006, in support of the Redevelopment Agency's collusion with Lennar's racist plans to gentrify and re-people Bayview Hunters Point and neighboring communities. Despite all our warninngs, testimony, documented evidence and predictions, these mutts have continued to side with the corporate privateers at the expense of the people. None of them deserve support, election or re-election to any public office above the level of assistant to the dogcatcher. They have no credibility, committment or common sense.
Led by Chris Daly, the only Supervisors with the perception, intellect and vision to see the writing on the wall, and who have consistently listened to and understood the wisdom of the community and it's needs, have been Mirkarimi, Ammiano and Sandoval.
The weak, witless and worthless group first named above were recently joined by the likes of the SFLC, Big Labor, Tim Paulson, ACORN, and other self-serving groups and individuals who conspired in a $4 Million scam to buy an election. How many of this cabal of conspirators were aware of these imminent announcements of Lennar's collapse before the election ? How much of this information was deliberately witheld from the public, and by whom, untill after the results were in and tabulated. Hey there Mr 'Houseboy' Bonehead, wanna 'fess up ! If any of the guilty named above claim ignorance then they are even more dumb and stupid than those who actually believed the lies propogated by Newscum and his inner circle. We have known the truth and the true motivations, the schemes and deceit, the incompetence and avarice behind this boondoggle for years. We have been whispering and screaming it, but very few would listen and even many of those could not hear.
We will not allow the destruction of our homes and communities in order to line the pockets of the speculators and the crooks who enable them, nor to advance the careers of corruptible politicians who are looking for handouts to help them up the ladder.
We will resist and fight back.
By any means necessary.
Prop F was Round One.
The bell has rung for Round Two.
Put 'em up - you're going down.
Patrick Monk.RN. Noe Valley.
Posted by Patrick Monk.RN | June 13, 2008 11:54 PM
Roosting Chickens Shit On The Golden Dome.
FROM: http://groups.yahoo.com/groups/patmonkrn
In the last few days Lennar has announced that it can't afford to build parks and sidewalks as part of their Massa Plan for the Bayview, and have now declared bankruptcy on Mare Island !!!
A week or so ago 84,000 people were duped into voting for Prop G and giving Lennar control of even more city land, what a farce.
Who is responsible for this debacle. Top of the list are most of our elected 'representatives. Lying;Duplicitous;Ignorant;Venal;Corrupt;Myopic;Lazy;Criminal or just plain Stupid. One or more of these adjectives applies to the following sorry SOB's.
Newscum;Muckswell;Pesky;Petty-Pier;Hellsburned;Ha-Ha;Duffy and McGoldbrick. All these sad excuses for people's representatives cast votes on Tuesday May 23rd 2006, in support of the Redevelopment Agency's collusion with Lennar's racist plans to gentrify and re-people Bayview Hunters Point and neighboring communities. Despite all our warninngs, testimony, documented evidence and predictions, these mutts have continued to side with the corporate privateers at the expense of the people. None of them deserve support, election or re-election to any public office above the level of assistant to the dogcatcher. They have no credibility, committment or common sense.
Led by Chris Daly, the only Supervisors with the perception, intellect and vision to see the writing on the wall, and who have consistently listened to and understood the wisdom of the community and it's needs, have been Mirkarimi, Ammiano and Sandoval.
The weak, witless and worthless group first named above were recently joined by the likes of the SFLC, Big Labor, Tim Paulson, ACORN, and other self-serving groups and individuals who conspired in a $4 Million scam to buy an election. How many of this cabal of conspirators were aware of these imminent announcements of Lennar's collapse before the election ? How much of this information was deliberately witheld from the public, and by whom, untill after the results were in and tabulated. Hey there Mr 'Houseboy' Bonehead, wanna 'fess up ! If any of the guilty named above claim ignorance then they are even more dumb and stupid than those who actually believed the lies propogated by Newscum and his inner circle. We have known the truth and the true motivations, the schemes and deceit, the incompetence and avarice behind this boondoggle for years. We have been whispering and screaming it, but very few would listen and even many of those could not hear.
We will not allow the destruction of our homes and communities in order to line the pockets of the speculators and the crooks who enable them, nor to advance the careers of corruptible politicians who are looking for handouts to help them up the ladder.
We will resist and fight back.
By any means necessary.
Prop F was Round One.
The bell has rung for Round Two.
Put 'em up - you're going down.
Patrick Monk.RN. Noe Valley.
Posted by Patrick Monk.RN | June 13, 2008 11:59 PM
So if Prop G gave Lennar public land for free, and if whatever shell holding company Lennar established for Hunters Point enters into Chapter 11, will the bankruptcy judge then sell off land we gave away to cover Lennar's debts?
And Pat, Prop F/G are only round one if our team can figure out how to come out of our corner where we're cringing against the ropes.
-marc
Posted by marc salomon | June 15, 2008 08:57 AM
marc
Absolutely no cringing in our corner, we're locked and loaded, ready for bear, and the crooks are going down for the count.
pat
Posted by Patrick Monk.RN | June 15, 2008 01:52 PM
Pat, by cringing, I mean a progressive coalition that cringes at engaging against racist, classist and environmentally destructive development plans, feeling comfortable adopting the posture that "chris daly is being bad," therefore we don't have to support him when he leads against racist, classist and environmentally destructive development plans.
-marc
Posted by marc salomon | June 16, 2008 09:59 AM