SunCal still owes city $63,000

BARSTOW • The development company that had planned to bring 25,000 new houses to Barstow before a slumping housing market stalled the project still owes the city about $63,000.

As of June, the SunCal Companies owed $63,167.92 to the city, and the company’s division president for San Bernardino County, Peter Johnson, told the Desert Dispatch that the Waterman Junction project, which had been slated to bring in 25,000 homes south of Barstow, was on hold due to housing market conditions.

City spokesman John Rader said none of that balance had been paid off as of Friday. Most of the money SunCal owes the city is back rent for a space in the Harvey House that SunCal had used to showcase its project, but it also includes legal services, said city finance director Terri Willoughby.

In February 2007, SunCal deposited $100,000 into a city account to pay for project-related expenses. Project contractors and consultants billed the city for services, and the city was to be reimbursed by SunCal.

Rader said the city is still waiting to see if SunCal’s financial situation will improve or if the company will file for bankruptcy. The city has no plans to take the developer to collections, he said. Either SunCal will restructure, move forward with the Waterman Junction project and pay the city, or the company may file for bankruptcy, in which case, the city will have to get in line with SunCal’s other creditors, he said.

“Going to a debt collector wouldn’t be a good use of time and resources,” he said.

He added that SunCal had been a good partner to the city in other respects, including investing in landscaping at the Harvey House.

“They really were a good corporate partner to the city, and we want to give them every opportunity to come through this and continue with their plan,” Rader said.

Representatives of SunCal could not be reached Friday.

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