A foreclosure sale is scheduled April 9 for the unfinished phases of the Tahoma Terra master planned community in Yelm.
Tahoma Terra encompasses 220 acres and was envisioned to contain as many as 1,200 housing units. Two of the nine phases envisioned under the original master plan are completed, developer Doug Bloom said.
He said 120 acres is subject to the foreclosure action.
The lender, HomeStreet Bank, began foreclosure proceedings in December after principal balance on an eight-figure loan went unpaid. HomeStreet said it was owed $16.1 million, including interest and legal fees, according to the notice of trustee’s sale.
Bloom said the loan paid for the work on the project up to that point. He said he was unable to extend the line of credit, and a homebuilder that had an option to develop the lots withdrew its offer.
“It’s tough economic times for everybody, and we’re trying to work through it,” said Bloom, who partnered with another developer, Steve Chamberlain, on the project.
Bloom said he is working with the bank to see if there’s a way to hold on to the property.
This latest major foreclosure is yet another example of how tightened lending because of the economic crisis has hurt developers.
The same bank has begun foreclosure proceedings on hundreds of acres of property in Hawks Prairie, including the site of the first phase of the proposed Lacey Gateway Town Center. The auction is scheduled for next month.
The property is owned by a limited liability company managed by developer Tri Vo.
On Thursday , a judge will hear arguments in a bankruptcy case involving Thurston Highlands, a 1,250-acre property in Yelm. Chamberlain wants to hold on to the property through bankruptcy reorganization while his partner, Dr. Paul Liao, seeks to gain control of it by moving forward with foreclosure.
Both Thurston Highlands and Tahoma Terra were annexed into the city in 1993, according to a staff report. Tahoma Terra is located north of the larger property.
Christian Hill: 360-754-5427
chill@theolympian.com
