Sunday May 18 2008
Roseville firm of Baltimore Ravine developer files for bankruptcy
By: Jenna Nielsen, Journal Staff Writer
Auburn project won’t be affected, he says
The lead developer of the 294-acre Baltimore Ravine project, which is planned roughly two miles from Auburn’s Downtown district, has filed bankruptcy reorganization for one of his companies, the Sacramento Business Journal reported Friday. Stephen Des Jardins’ Diamond Creek Partners Ltd. filed for bankruptcy after failing to reach an agreement with Umpqua Bank on a delinquent $26.9 million loan, according to the Business Journal. The development company estimates its assets, which include 25 acres for homes and shopping, an office building and the La Provence restaurant, are worth twice what is owed to Umpqua, according to documents filed this week in U.S. Bankruptcy Court in Sacramento. Des Jardins is on vacation until May 20, but said via e-mail Friday that Diamond Creek proceedings will have no effect on Baltimore Ravine, because the two projects are totally unrelated. The Business Journal reported that Des Jardins, who lives and works at the Diamond Creek development in Roseville, had been hoping to refinance. “We did our best, and the bank elected not to renew the loan,” he told the Business Journal. “They had set up a foreclosure sale. To protect the tremendous equity here, and to protect all the creditors, we took this step.” Will Wong, city community development director, echoed Des Jardins Friday by saying the Diamond Creek bankruptcy filing will not affect the planning or development process of Baltimore Ravine. “It has nothing to do with Baltimore Ravine,” Wong said. The proposed Baltimore Ravine development, in the early planning stages, could add more than 1,000 new homes, several condominiums, office space, senior living and retail shopping roughly two miles from Auburn’s Downtown district. The project is bounded by the Union Pacific Railroad track to the south, Auburn Folsom Road to the east and Interstate 80 to the north and northwest. The project’s entrances would be Herdal Drive off Auburn Folsom Road and Werner Road near Interstate 80. Perry Ranch Road will not be used as an access point. City staff, planners and developers are working on the project’s draft environmental impact report, which is expected to be available in the coming months. The Journal’s Jenna Nielsen can be reached at email@example.com or comment on this story at auburnjournal.com.