Sacramento development files for bankruptcy – KCRA Sacramento

SACRAMENTO, Calif. (KCRA)

A Sacramento development that was facing financial issues was in U.S. Bankruptcy Court Friday.

Township 9 in the River District had been touted as a mixed-use development that would serve as a gateway to downtown Sacramento.

Township 9 Owners, LLC filed the paperwork Friday saying, The Board has reviewed the Companys financial position and concluded that that Company is unable to pay its debts as they arise and that it would be in the best interest of the Company and its subsidiaries to reorganize.

Josie Miller and Claudine Walls said they love living in Township 9s only apartment building, the Cannery. They moved in thinking the surrounding empty lots would quickly turn into stores, restaurants and more homes.

"We don't have any yet, Miller said. They said we were going to have some condominiums, but I don't see any yet.

"I thought there was going to be some stores, Walls said. But it's not. But I love it. It's quiet.

In fact, it may stay quiet a little bit longer now that the companies developing the site have filed for bankruptcy.

The developers of the empty lots and investors will be forced to re-examine the financing of the deal.

The developers said it won't have any effect on people living at the Cannery but it could delay construction around the site.

WEBVTT READ THE PROJECTIS BY NO MEANS DEAD.THE BANKRUPTCY FILING COULD,HOWEVER, SLOW FUTURECONSTRUCTION HERE.JOSIE MILLER AND CLAUDINE WALLSSAY THEY LOVE LIVING IN TOWNSHIPNINE'S ONLY APARTMENT BUILDING.THEY MOVED IN THINKINGSURROUNDING EMPTY LOTS WOULDQUICKLY TURN INTO STORES,RESTAUARANTS AND MORE HOMES.>> WE DON'T HAVE ANY YET.THEY SAID WE WERE GOING TO HAVESOME CONDOMINIUMS, BUT I DON'TSEE ANY YET.>> YES, I THOUGHT THERE WASGOING TO BE SOME STORES.BUT IT'S NOT.BUT I LOVE IT.IT'S QUIET.KEVIN: IN FACT, IT MAY STAYQUIET A LITTLE BIT LONGER NOWTHE COMPANIES DEVELOPING THESITES HAVE FILED CHAPTER 11BANKRUPTCY.THAT MEANS THE DEVELOPERS OF THEEMPTY LOTS AND THE LENDERS WILLBE FORCED TO REEXAMINE THEFINANCING.THE DEVELOPERS SAY IT WON'T HAVETHE CANNERY, BUT IT COULD DELAYCONSTRUCTION AROUND HERE.EARLIER THIS WEEK, COUNCILMEMBER JEFF HARRIS HINTED THEPROJECT HIT A SNAG.>> IT'S A COMPLEX FINANCIALSTRUCTURE, SO THEY ARE WORKINGTHROUGH THOSE ISSUES RIGHT NOW.PROGRESS ON THE TOWNHOMES HASSTALLED.KEVIN: HARRIS SAID HE STILLTHINKS THE PROJECT WILL COME TOFRUITION AND HE HOPESDEVELOPMENT REMAINS UNDER LOCALCONTROL.THE DEVELOPERS SAY FILINGCHAPTER 11 WILL GIVE THEM A WAYTO CONTINUE ON WITH THE PROJECTAND NOT DROP IT ALTOGETHER.JOSIE MILLER SAYS SHE CAN WAIT.>> WELL, IT IS WHAT IT IS.

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Sacramento development files for bankruptcy - KCRA Sacramento