Spokane7
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October 1, 2009 in Business
Bank takes Legacy Ridge
Developer Marshall Chesrown turns over Liberty Lake project to AmericanWest
Coeur d’Alene businessman Marshall Chesrown has turned the Legacy Ridge development in Liberty Lake over to AmericanWest Bank.
New deeds on the properties were filed last week in lieu of foreclosure on $17.8 million in debt Chesrown took out to buy and improve two parcels: 120 acres intended for luxury homes and 906 acres that was to be left largely undeveloped.
Only a few homes have been built in Legacy Ridge, which was designed to accommodate more than 100 with views of the Spokane Valley and Liberty Lake.
AmericanWest President Patrick Rusnak said finished lots like those at Legacy Ridge have been most affected by the plunge in real estate values. Builders and would-be owners cannot get the financing to erect homes, starving developers of the funds needed to repay loans.
“It’s a quality project,” he said. “We have been involved in it for several years.”
Developers and their banks have been trapped by the sudden reversal of real estate fortunes, Rusnak said.
“You roll the clock back three years, and that project looks a lot different than it does today,” he said.
Rusnak said AmericanWest, which has already allowed for the loan loss, is working with consultants to determine how best to dispose of the properties. Selling them intact, and quickly, is unlikely, he said.
Chesrown, who could not be reached for comment, made his mark in the area with his Black Rock development above Lake Coeur d’Alene. But more recent ventures like Legacy Ridge have suffered in the economic downturn, and a Montana bank has filed a $14.6 million foreclosure against Black Rock North.
His proposed Kendall Yards project on the north bank of the Spokane River near downtown is reportedly for sale.
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BT on October 01 at 8:05 a.m.
HAhAHahah…stupid California…go back, I’m shocked that people would want to have a house built on the old dump anyways. Sorry, California developers we like our 1/2 acre lots in the Valley and Liberty Lake…Go back to California!~~~
westside on October 01 at 8:42 a.m.
And….Kendall yards in spokane is dead development…
liarsinnews on October 01 at 8:53 a.m.
The city of Spokane city council and Mayor Verner pushed through a TIF give away, regarding the northbank of the Spokane river, and as usual no consideration given citizens that were robbed of money on the venture.. Do these clowns that claim to represent us and our community have to throw dice and gamble taxpayer money on behalf of the developers and if the developer looses the citizens pay for the crap shoot?
SPOKANITE on October 01 at 1:02 p.m.
Umm…BT, I believe Chesrown was raised in Spokane Valley and graduated from Central Valley.
Dick Adams, The TIF was passed by Council when Dennis Hession was in office not Verner although she was on Council. As far as citizens being “robbed of money” when did that taxpayer money exchange hands? As I understand TIF in WA, 75% of the incremental tax dollars generated by the development are dedicated to help pay off a portion of the cost of the infrastructure. The remaining 25% goes back to the general fund.
Westside, there’s a lot of development that is not happening aside from Kendall Yards. Perhaps it is dead as was originally proposed, but that doesn’t have any bearing on future development. How are things on your side o’ the state fairing?