Developer files Chapter 11

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The SRKO Family Limited Partnership filed for Chapter 11 bankruptcy on Friday, Feb. 19,  in U.S. Bankruptcy Court in Denver.

The company is owned by local developer Jannie Richardson.

The action signals a new phase in the life of the beleaguered 150-acre Colorado Crossing multi-use development at Interquest and Voyager parkways.

Richardson had been under pressure since last summer to pay dozens of lien holders for work already completed on the project, which has stalled in recent months.

The move doesn’t come as a complete surprise to those who had worked on the project. G.E. Johnson Construction Co. President Jim Johnson said Richardson had mentioned as early as last October that she might pursue bankruptcy in order to possibly secure last-ditch, debtor-in-possession financing.

The general contractor is owed about $9 million for work completed on a new Cinemark multiplex theater and a parking garage. The project was planned to eventually include 1.6 million square feet of office space, retail, housing and entertainment users.

As Johnson pointed out, “a lot of different things can happen” once a bankruptcy is filed.

“Jannie was pretty stalled out with her own financing – as were other interested parties. There is financing and there are investors willing to participate when a developer goes into bankruptcy. She has met with some of them and has probably been advised this would allow her a way to get the money to complete the development,” he said, adding that Colorado Crossing remains a highly desirable parcel because of its location near future new household growth.

While Johnson is a secured creditor, which makes him first in line to be paid once bankruptcy issues are resolved, he doesn’t expect to be paid in full.

“I don’t have a lot of experience in this position,” he said. “Our other clients have all secured their financing. Jannie never really did.”

5 Responses to Developer files Chapter 11

  1. Is Jeff Smith, the owner of El Paso Counties large home builder (Classic Homes) a partner of Jannie and this project?

    Stepen
    February 23, 2010 at 11:28 pm

  2. The answer to Stepen’s question is no. Neither Jeff Smith nor Classic Homes has anything to do with the Colorado Crossing project.

    Karl
    February 24, 2010 at 11:46 am

  3. And yet we need another major shopping center at Northgate and I-25!!! Copper Ridge, the Norwood development, and Colorado Crossing are all counting the same households to justify their projects. I hope the people living there have a lot of money to spend. And, by the way, what about Chapel Hills and the new North Nevada development? There must be a lot of well-off shoppers in our metro area.

    Carla
    February 24, 2010 at 2:27 pm

  4. Typically the commercial/retail follows the rooftops of new homes, not vice versa. Whoever gave Richardson advice on when to build new retail in that part of town at this time in particular must have been employed by her competitors!

    Liam
    February 24, 2010 at 4:54 pm

  5. RE: “Typically the commercial/retail follows the rooftops of new homes, not vice versa…”

    Colorado Crossing was to have a very strong residential component, but Jannie wasted her money on the parking garage instead… She’d brag about her $9M , non-revenue producing cash sucking parking garage… Over 300 apartments are planned directly across from the front of the theatre.

    It’s intreresting to see the list of unsecured creditors in her bankruptcy petition , she lists herself as # 1…

    Eddie
    February 25, 2010 at 1:06 pm