Financing trouble stops Bair Chase construction
Post Independent Staff
Gould Construction walked off the new Bair Chase Golf Course construction site Wednesday because it hasn’t been paid while the developer tries to secure financing.
Gould Construction started excavation work on the project April 4, as a sub-contractor for Weitz Golf. Since then, Gould hasn’t been paid at all, said president Mark Gould.
“They’re not fulfilling their end of the bargain so we’ve stopped work until they do,” said Gould, referring to Weitz Golf.
The problem, however, is not with Weitz Golf, it’s with the developers, Bair Chase Property Co., which hasn’t paid Weitz.
Bair Chase needs to borrow more than $50 million to complete the projects, but a financing deal that was supposed to go through Monday was delayed, said the project’s general manager, John Young.
“They don’t do that (kind of deal) on the back of a napkin,” he said.
Young wouldn’t give a specific reason the deal didn’t go through, and cited complexity and many investors.
“We do believe our financing is imminent,” he said. “The investors are in place, we’re literally just waiting for the consummation of the deal,” he said.
He also didn’t blame contractors for stopping work.
“They did what they need to do, which is stop work,” he said.
While Gould Construction has completed about 40 percent of the excavation work they’ve been hired to do, Weitz Golf purposefully committed few resources to the project, waiting for payment.
“We have kept it at a medium pace just so we don’t get too far out on a limb like Gould (Construction) has,” he said.
Weitz Golf has given Bair Chase two requests for payment due on the 15th of each month. The first will be a month late next Wednesday, the second will be due that day.
Both Weitz Golf and Gould were confident the project would resume before long.
“I think it’s all going to work out, but certainly we need to exercise the terms of our contract,” said Gould.
Young thought construction would resume by next week.
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