$50M Bond Deal Boosts Project

(Bond sales are making news around many GlobeSt.com markets this morning. For a related story, click here.)

The sales of the bond issues conclude more than five years of efforts by the city of Fontana, the investment banking firm and others involved in the project to resolve the default. Bill Huck, managing director at Stone & Youngberg, describes the solution as a "very complex workout." Efforts to resolve problems included deciding what land uses were appropriate for the new Empire Center, gaining control of the tax-delinquent property, resolving lawsuits, negotiate the sale of the property to new developers, and creating a mitigation plan for the endangered Delhi Sands Flower-Loving Fly. The proceeds of one bond issue will fund road and traffic improvements necessary to complete development of the single-family housing, neighborhood shopping center and business park that are planned on the 300 currently vacant acres. Proceeds of the second bond issue will be combined with land sale proceeds and used to repay the owners of the delinquent bonds all the money that is owed to them, including delinquent principal and interest. S&Y Capital Group, an affiliate of Stone & Youngberg, acted as the city's real estate consultant in arranging the land sales to new developers and in negotiating the development agreements. The project is slated to get under way when work begins by the new developer, Empire Commercial Real Estate of Ontario.