Condo project in doubt

Under a proposed bankruptcy plan, the developer of Wingfield Towers has until Oct. 25 to come up with $9.7 million to pay Dr. John Iliescu for the property and possibly proceed with plans to build Reno’s tallest building.

Under a reorganization plan filed July 27, BSC Investment LLC intends to pay off Iliescu through a loan or sale of the property. Enough money would be borrowed to build a condominium project, including a 40-story tower, or else the project would be sold to pay Iliescu and other creditors, said Stephen Harris, BSC’s bankruptcy lawyer.

Chris Barrett, a spokesman for BSC, said officials are still confident they can raise $330 million to build the project, including a 492-foot, 40-story tower and a 28-story tower. The 499-unit project, including a large public plaza overlooking the Truckee River, would be built on 1.36 acres south of Wingfield Park in downtown Reno.

With plans approved for the condos last November, BSC contends the property is worth $23.5 million. If the project proceeds or the property is sold, Iliescu would be paid $9.7 million first to complete the land sale. Otherwise he retains the title. He already has been paid $1.17 million.

Under the plan, a sale would net $13.8 million to pay other creditors. That includes DeCal Inc., which loaned BSC $5 million, and $1.78 million that Fisher Friedman Associates, architects from Emeryville, Calif., claims is owed in architect fees. That fee is being disputed.

By SUSAN VOYLES - Reno Gazette-Journal

Tagged as: developer, property

 

 

 

 

USGBC - U.S. Green Building Council

HUD - U.S. Department of Housing and Urban Development

NAR - National Association of REALTOR

RealtyTrac

FHFA - Federal Housing Finance Agency

Freddie Mac

MBA - Mortgage Bankers Association