Former Levy Partner Declares Bankruptcy
The Pacific Coast Business Times reports that former Bill Levy partner Roy Millender and his wife have declared bankruptcy because of the failed La Entrada project. It also seems that Santa Barbara Beach Holdings may be next.
With over $100 million in liabilities found in La Entrada -- who could blame them. The PacBiz Times says that court filings suggest the Millenders are of relatively modest means although they do own 45% of The Flavia Group. There will probably be a few more people finding themselves in financial ruin because they counted on La Entrada being built. I feel sorry for them but is it the risk of doing business?
With over $100 million in liabilities found in La Entrada -- who could blame them. The PacBiz Times says that court filings suggest the Millenders are of relatively modest means although they do own 45% of The Flavia Group. There will probably be a few more people finding themselves in financial ruin because they counted on La Entrada being built. I feel sorry for them but is it the risk of doing business?
posted by Sara De la Guerra | 2/19/2007 11:25:00 PM
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Obviously, it is all the fault of Mayor Marty Blum.
I read that somewhere a few days ago as I was shredding the paper into strips to absorb my puppy dog poop.
Santa Barbara Beach Holdings declared chapter 11 bankruptcy last year.
And the story about SB beach holdings was in the biz times in November.
Isn't this almost a case study in the development conundrum?
The long history of avaricious development, with little concern for traffic, infrastructure, etc. has made residents super-cynical about all development. They have influenced planning staffs (definitely within the County, somewhat less so in the City) to try to be harsh on developers... of course, the developers have fought back with the occasional $50 million lawsuit.
But development has become a high-risk endeavor. The high level of risk results in developers seeking to make many, many millions off of their projects... they feel they deserve it because of the risk.
And so we get Levytown.
Maybe we could figure out a way to make development less risky, in exchange for very restrictive covenants and conventions on the units built... for example, car ownership and usage could be strictly limited and taxed heavily if it exceeds limits, for those who live in the less risky development. That might address the traffic woes.
If development could be made less risky, the exorbinant profits developers make could be reduced... less risk, less reward.
I don't know how to implement; no-one trusts anyone anymore, so supercynics on all sides rule.
Also reported heavily in every other news outlet in town, with the exception of the News-Press of course.
Well, Mayor of the people, Marty Blum, did vote wholeheartedly for the ill-fated Levy timeshare project that was always a bad fit with lower State Street. The investors who figured to get rich quick with this overblown, inappropriate homage to greed got exactly what they deserved. Anyone of modest means should have known better than to get financially involved with the likes of Levy. Now maybe we can get something in there that we need--workforce housing for workers who serve the ultra-rich, perhaps, rather than luxury timeshares that cater to them...But how much City Planning and approval time and taxpayer money was totally wasted in the process? What would our Mayor have to say about that? If only we had a real newspaper that would investigate this story so it doesn't happen again.
I miss Rocky Galentti's and the other hot spots down in that area. I'm amazed that area has been so ignored for so long. Seems all the developement plans tend to lean towards tourists and high density housing. The quality and Santa Barbara flavor seems to be continually watered down to the point that I think our so called housing problem will be solved as soon, no one will want to live here. Is it me or has State st. gotten down right boring and filled with empty store fronts?
Here is the full announcement for the rally Wednesday and a description of Operation Cold Shoulder:
(copy and paste the URL)
http://www.edhat.com/site/tidbit.cfm?id=1476&nid=2523&linkSource=edhat.com
We should build dense low income housing and homeless facilities there.
Mr. Pritchett et. al.
To encourage participation in Operation Cold Shoulder and the Wednesday rally, We'll be giving away away free protest T-shirts.
We printed the shirts at our own expense and will give them to anyone who wants one on Wed. at De La Guerra Plaza. (while they last)
Get Your "I've been sued by Wendy McCaw", "I've been fired by Wendy McCaw" or "I've been disloyal to Wendy McCaw" T-shirt just by showing up tomorrow at noon in De La Guerra Plaza.
Good thinking 6:21 PM.
Yeah, lets house our homeless and build really dense low income housing right there in the center of the most important tourist activity in Santa Barbara where it will most certainly drive away those many tourists that continue to support our local economy.
Yes I do feel for these underprivileged and often desperate members of our community, but lets get real here.
Without those tourist dollars coming in, we really won't be able to support the homeless very long if we place them there would we?
9:52 pm - what's there now that serves the tourist or the community?
Let's create a lovely place for the tourists and cram everyone who lives here into ridiculously dense housing complexes in the middle of our neighborhoods, but well away from where they might offend the sensibilities and close the pocketbooks of our dear "weekend residents." Puhleeze--our upscale tourism ecomony has destroyed the middle class dreams of so many small business owners and lost so many residents who have been forced to close up shop and leave town. It's a real shame. And Levytown will just give way to another glitzy tourist attraction. Too bad for SB, too bad for all of us.
The tourist economy is exactly why we have so many low paying jobs in this town. Which also exacebates the need for cheap housing so the tourist corporations can take the money and run. How about we cut back on all the restaurants and hotels and time shares and maybe we will be able to use our roads on the weekend like other normal communities.
Roy Millender... the name rings a bell. I went to school with a Roy Millender at Westmont too many years ago. I can't remember if there was an elder generation of Millender -- a parent who was a faculty member there-- as well as a my-generation of Millender.
Then again, it may be a vague mixup in names. But there was someone who was my contemporary whose father was on faculty... in the school of business.
Guess I'll have to dig out my yearbook.
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