Empire Companies, the developer of the unfinished Mountain Gate subdivision in Clarkdale, filled for bankruptcy April 25, according to Riverside Divisional Office of U.S. Bankruptcy court in California.
Construction on the community halted months ago, and residents waited to hear from Empire, who appeared to have disappeared. Unpaved streets and unfinished lots surround the area of the development Empire completed before calling it quits.
“I told my wife that at least there are lots of safe, empty streets for our kids to ride their bikes on,” Mountain Gate resident David Gordon said.
By Greg Nix and Trista Steers
Larson Newspapers
Empire Companies, the developer of the unfinished Mountain Gate subdivision in Clarkdale, filled for bankruptcy April 25, according to Riverside Divisional Office of U.S. Bankruptcy court in California.
Construction on the community halted months ago, and residents waited to hear from Empire, who appeared to have disappeared. Unpaved streets and unfinished lots surround the area of the development Empire completed before calling it quits.
“I told my wife that at least there are lots of safe, empty streets for our kids to ride their bikes on,” Mountain Gate resident David Gordon said.
After filing for bankruptcy, Empire remains elusive.
An Empire representative in the Flagstaff office could not be reached via telephone and the company’s voice mail at its corporate headquarters in Ontario, Calif., was full.
The company’s Web page no longer exists, either. The page says, “This is the page body text,” repeatedly.
IndyMac Bank, Empire’s lender for the Mountain Gate project, didn’t have a comment regarding a possible trustee sale of the property, according the MWW Group media relations specialist, Katie McFadzean. MWW Group is a public relations group contracted by IndyMac.
Clarkdale Town Manager Gayle Mabery said the town is currently working with IndyMac regarding Empire’s outstanding debt to the town.
Empire owes the town approximately $200,000 for professional services the town supplied in development of the subdivision, including engineering fees, according to Mabery.
“The town is likely going to have to take a position in the bankruptcy proceedings,” Mabery said, because of the outstanding debt. The town will seek representation regarding the case.
Empire also entered a development agreement with the town that any prospective buyers will be bound to.
The development agreement includes a $2 million contribution to the town’s new wastewater treatment facility, according to Mabery. The agreement said that if more than 240 homes were built on the site, the developer had to post the $2 million, Mabery said. Currently, there are fewer than 240, but if a new owner wanted to build additional homes, the owner would have to pay the town.
Public infrastructure improvements — roads, sewer and water systems — are also part of the agreement, Mabery said.
Greg Nix can be contacted at 282-7795, Ext. 122, or at gnix@larsonnewspapers.com
