Peter Pays Paul

The Wilder Project in Orinda, CA is facing legal challenges according to Orinda project stumbles over another legal hurdle – ContraCostaTimes.com.

The lender for a luxury residential subdivision in Orinda’s scenic Gateway Valley has sued the site’s developer, seeking to foreclose on the project, which in February staggered into default on its $180 million mortgage.

The 1,600-acre Wilder project has a murky outlook now that the loan default, the lawsuit and a court’s decision to place Wilder into receivership have coalesced to create a number of fresh financial and legal obstacles for the development, which was first proposed two decades ago.

Merrill Lynch Mortgage Lending Inc. sued OG Property Owner LLC, the developer of the Wilder project, on April 7, Contra Costa County court records show.

OG Property planned to build 245 homes, an arts and garden center, five sports fields, a fitness and pool center, a city corporation yard, and preserve 1,400 acres of open space. The homes were pegged for sale at $3 million to $5 million each.

The Contra Costa Times is reporting that the project has been in the works for over 20 years and has faced many similar obstacles.

To make matters worse,

A dozen contractors, however, have filed liens against the property, claiming that the developer has not paid them for their work. The combined money owed to contractors, court records show, is $17 million.

It appears that a major investor is looking to buy out Merrill Lynch’s note. Barring this the project is likely to be tied up in court for some time.

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