Today Thomas Enterprises could lose funding for the Railyards project if the developer can’t prove it has the money to continue the job. The state of California has said it will pull $30 million in grant funding if developer Thomas Enterprises cannot clear a notice of default with investor Inland American.
There is also another $50 million grant as well as another $35 million allotted from the state transportation commission, putting more than $100 million in funding at risk. Inland American says it will work to protect the state grant funds, with or without Thomas Enterprises. (CBS13)
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KCRA's reporting: The deadline has passed for Thomas Enterprises to resolve its outstanding debt. However, it appears that $30 million in grants isn't necessarily gone.
Thomas Enterprises, the developer of the downtown railyards, has been struggling financially.
When the developer defaulted on a loan payment, it put $30 million in grants from the California Department of Housing and Community Development in jeopardy.
State officials had said that they would withhold that money until Thomas Enterprises resolved its debt, or at least made substantial progress toward a resolution, and set a deadline for 5 p.m. Monday.
However, minutes after the deadline passed, the state announced that it's been in constant communication with all parties involved and is currently reviewing its options.
The California Department of Housing and Community Development also said in a statement Monday that it "is taking prudent action to insure the taxpayers' money is spent appropriately."
well, hopefully this will mean that there won't be much of a lull in activity. those bridges need to get built pronto!
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