Crews from DeSilva Gates Construction were seen laying asphalt Wednesday, April 10, on Lammers Road, which has been marked for several months with temporary lanes as work on the road ceased.
According to city of Tracy engineer Kul Sharma, the work was put on hold because of financial difficulty among the backers of the Gateway business park development at the southwest corner of Lammers Road and 11th Street.
Developer Tracy Gateway LLC, which owns 71.46 acres in the 538-acre project area, was obligated to pay for road improvements as part of its agreement with the city to build up the land, Sharma said. The cost to the developers is about $12 million, he said, including sewer and water improvements.
Tracy Gateway LLC filed on March 15 with the U.S. Bankruptcy Court for the Eastern District of California to voluntarily liquidate under Chapter 7 of U.S. bankruptcy law, according to online business bankruptcy database www.busbk.com.
“They had some financial issues regarding financing
for the project, for the development of Gateway,” Sharma said Wednesday. “Then there was some misunderstanding with Gateway and the contractors, which apparently they have resolved.”
Sharma said “the majority” of the work should be finished by Monday, April 15, including permanent lane markings on the new pavement.
The engineer said the work should ease traffic delays around Kimball High School and the western end of 11th Street. He also called it the “last piece of basic infrastructure” before the Gateway property can be developed.
Gateway, which the Tracy City Council approved in 2002, suffered “a blow,” in the words of City Manager Leon Churchill, when Sutter Tracy Community Hospital decided in December to delay plans to build a new hospital, which was expected to be one of the anchors of the business park.
The hospital was slated for land separate from the parcels owned by Tracy Gateway LLC.
According to real estate website LoopNet.com on Thursday, April 11, the 71.46 acres owned by Tracy Gateway LLC are being sold for an asking price of $17.5 million.
Despite the developer’s looming liquidation, Sharma said officials at City Hall expect the business center will still be a success.
“(The city is) hearing back from the owners that they will soon pursue senior housing and care facilities,” he said. “They have some other plans for development, but we haven’t seen any proposal at this time.”
• Contact Jon Mendelson at 830-4231 or email@example.com.