Major setback for Shiloh project
Published: Saturday, November 7, 2009 at 3:00 a.m.
Last Modified: Saturday, November 7, 2009 at 10:39 p.m.
Shiloh Sustainable Village, proposed as a model of environmentally friendly construction on Windsor’s southern periphery, has suffered a severe setback, the victim of financial problems.
Lenders took back the six-acre property two weeks ago from the developers, who were unable to secure financing to build the $50 million project.
Touted as a shining example of green building, Shiloh Sustainable Village included multi-family dwellings and senior housing, with shopping, restaurants and offices, part of a “lifestyle center” focused on energy efficiency.
“I wanted it to become the new standard for development,” said Windsor Town Councilwoman Debora Fudge, who described it as “an outstanding state-of-the art proposal.”
“The economy just killed this project for the immediate future,” she said this week. “It’s all about financing.”
On Friday, the developers said they had not given up hope and are trying to breathe new life into their plans.
“We are looking to work this out and move the project forward,” said Sean Rodrigues, the architect and manager for Northstreet Partners, the Healdsburg limited liability company behind Shiloh Sustainable Village.
Rodrigues said he is attempting to work out a new deal with Equity Bancorp, the lender that foreclosed on the property after his related company, Shiloh Sustainable Village Partners LLC, was unable to meet its debt obligations.
“We’d like to finalize our recapitalization and work with Equity Bancorp to get the project up and running within the next six months,” he said.
Equity Bancorp officials did not return phone calls Thursday and Friday to comment on their plans for the property.
Proposed east of Walmart and Home Depot, Shiloh Sustainable Village was billed as a “carbon neutral community,” that would incorporate solar power, green building materials, passive heating and cooling systems, high-efficiency appliances and low-energy lighting.
The project planned to have rain catchment and storage systems for landscape irrigation and to water the 450 trees that would have been planted.
Northstreet, a member of U.S. Green Building Council, anticipated a “gold” Leadership in Energy and Environmental Design certification for the project.
Initially proposed in 2004, it gained final approval from the Town Council a year ago, rising to the top of the list when Windsor allocated its annual ration of residential building permits.
It included 130 market rate townhomes and 75 affordable senior housing units, according to Windsor Planning Director Peter Chamberlin.
But Sonoma County property records show Shiloh Sustainable Village Partners fell behind in their debt obligations to the lead lender on the property, Equity Bancorp Inc.
The San Rafael-based private money lender was among about 10 investment groups and individuals who put up more than $8 million to buy the six acres of vacant land at the northeast corner of Hembree Lane and Shiloh Road in 2006.
In May, Equity Bancorp foreclosed on its loan to the developers, claiming they owed almost $3.5 million.
Two weeks ago at a trustee sale, Equity Bancorp acquired the property with a bid of $2.85 million at auction, according to the North Bay Business Journal.
A year ago, Rodrigues told The Press Democrat he had the financing lined up for the first phase — 76 affordable apartments that would be built over storefronts and commercial space.
“When the credit markets collapsed in the beginning of 2009, it put pressure on every single developer,” Rodrigues said Friday. “Funding dried up.”
The anchor tenants for his 64,000 square feet of commercial space included Bear Flag Republic, which planned to open another brew pub in addition to its one in Healdsburg.
The other major tenant was a specialty market operated by Santa Rosa businessman Mike Runyan along the lines of his Skyhawk Market.
Rodrigues said if everything works out, he would renegotiate with the commercial tenants.
He said there are “glimmers of hope” that things will improve over the next six months and the funding will be secured to go ahead with construction.
Jake Whiteley, co-founder of Northstreet Partners, said Friday “we are in the process of trying to determine what, if anything, is possible for this piece of property.”
He indicated it could be redesigned, but declined to be more specific.
“In the current design, it may not get built,” he said. “The intent is to try and salvage elements of the design to satisfy the requirements of the town ... do something buildable given the new economy.”
Windsor’s general plan requires mixed use on the frontage of the property with high-density residential in back.
The entitlements to build the residential dwellings on the property expire in a year, although they could be extended another year.
But the current economy and difficulty in obtaining construction financing poses additional uncertainties.
“I don’t know what’s going to happen,” Windsor Planning Director Chamberlin said earlier this week. “It’s an enigma when it’s (lender)-owned property.”
You can reach Staff Writer Clark Mason at 521-5214 or clark.mason@
pressdemocrat.com
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