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Johnson: Railyards Property Could Change Hands



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(Sacramento, CA)
Thursday, September 23, 2010

Developer Thomas Enterprises is in a loan dispute with its Illinois-based lender.  That dispute has put a big chunk of state funds at risk - funds the project needs for the road and bridge work currently under way.

Johnson says it appears the lender will take control of the property through a friendly foreclosure.

Johnson: "They have assured us that they are going to satisfy and fulfill every financial obligation.  That means the project is going to move forward.  What it will ultimately look like might be a different story, but it's gonna go forward.  We're not gonna jeopardize the funding federally and statewide.  That is a big deal."

The city has poured millions of dollars into the Railyards project, which is the largest infill development west of the Mississippi.  If built, it would have office, retail and housing units - and possibly even a new basketball arena.

Thomas Enterprises did not return a request for comment.

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