Foreclosure Threatening Mountain Resort in Lassen

January 23rd, 2008

The developers of an idyllic mountain resort in Lassen County are facing foreclosure. By 2 pm on 4^th February they will have to produce $15.8 million to stave it off. California Mortgage and Realty Inc, a real estate company based in San Francisco, to that effect has posted a notice.

Dyer Mountain Associates are the developers of this dream 7,000-acre resort. The developers had taken a loan of more than $30 million. They are asking for either cash or cashier’s cheque by the scheduled date. The developers are engaged in constructing 4,0000 residential units, two golf courses as well as a ski resort for about 50,000 holidaymakers per year. If the money is repaid by the deadline date the auction to be held in Lassen County Courthouse will not take place. The president of the developers, Dyer Mountain Associates, Sedgwick, is optimistic that they will be able to go through with the refinancing for the $35 million development by 4^th February.

Dyer Mountain Associates owe the mortgage firm $31.5 million in addition to interest for four notes (three being $10 million). The loans enabled Dyer Mountain Associates to buy the land from Roseburg Resources Co., which had been engaged in timber production in this region. The Dyer Developers are working from New York and their target is to get $55 million from those planning to visit the resort. This does not complete all the work – lots remain to be done. However Sedgwick from Los Gatos dealing with real estate is optimistic that everything will work out fine.

Foreclosure is only one of the threats Dyer development is facing. Mountain Meadows Conservancy, Sierra Watch as well as Sierra Club are suing the developers for the threat posing the environment because of their activities. Earlier in the month the plaintiffs added to their complaint that the understanding agreed upon by Lassen County Board of Supervisors abuses the rights of voters in the county. Ballots numbering 2000 sanctioned use of virgin land to allow the authorities to revoke the work in the new areas if the ski resort did not start operating within seven years. This tantamounts to cancellation of the project.

The February foreclosure sail concerns $10 million loans taken by Dyer development. The September complaint was modified to include also the other two loans amounting to $30 million. The developers however are confident of work starting soon.