City Crossing, a $2 billion mixed-use development in Henderson, has filed for Chapter 11 bankruptcy protection.
The 126-acre, 6-million-square-foot project by the Plise Development & Construction broke ground last year at St. Rose Parkway and Executive Airport Drive.
Roughly $30 million in site improvements, including grading, utilities and roads, are now under construction.
Phase one plans call for 175,000 square feet of retail space, an eight-story, 215,000-square-foot office building, 184 apartments and a 160-room boutique hotel. Construction on the 50-acre first phase was originally expected to start this summer.
On June 2, City Crossing 1 LLC, a Plise-controlled entity, filed to reorganize $180 million in debt. The project, which consists of 15 parcels, is secured by raw land near the Henderson Executive Airport.
Its current appraised value is $250 million, company officials said. But the housing market implosion has tightened credit markets and devalued real estate backed loans.
"We've been working to refinance the existing debt at City Crossing over the last several months," said Mitchell Stipp, Plise's chief operating officer. "All of our lenders, except for one local community bank, have been willing to work with us and negotiate mutually acceptable terms."
The lender in question is Community Bank of Nevada, a subsidiary of Las Vegas-based Community Bancorp. Community Bank of Nevada has lent about $30 million toward the development of City Crossing.
Bruce Ford, the bank's chief operating officer, didn't return calls seeking comment for this story. The project has seven lenders, with 1st National Bank of Nevada listed as its single largest debtor at $70 million.
Plise, meanwhile, will self-finance the project's remaining site upgrades from cash reserves.
It still intends to build the 41-building City Crossing as originally envisioned.
Plise has been negotiating with a national firm about becoming a possible development joint-venture partner.
City Crossing's second phase calls for another eight-story, 215,000-square-foot office building and another 400 residential above 800,000 square feet of lifestyle retail shops and restaurants. A third phase entails two more office buildings as well as 25 acres of amenities, including parks, trails, sports courts and a community center.
City Crossing will debut by early 2010 and reach completion in 2015.
Contact Tony Illia at email@example.com or 702-303-5699.