May 27, 2004

Sunset to be sold?
By Lora Abcarian

DENVER -- Attorneys Harvey Sender and Bonnie Bell Bond filed a motion on May 21 asking the U.S. Bankruptcy Court to grant Villages at Sunset developer Larry Kanne permission to sell his property to Security Land Trust.

On May 10, Kanne entered into an agreement with Security Land Trust and its trustee Robert Warner. Security Land Trust developed the Wal-Mart/Home Depot complex in Bergen Park.

According to the filing, the sales price is listed at $5,001,000 in cash. A total of $100,000 in earnest money has been provided by Security in the form of a promissory note for the residential lots. A total of $1,000 in earnest money has been provided in the form of a check for the commercial property.

The sale must be approved by the Bankruptcy Court and would be executed within 30 days of the court's order.

According to the document, this closing date can be extended up to 90 days if Security Land Trust provides a nonrefundable daily fee of $2,000 offset from the purchase price.

Several contract stipulations were discussed in the motion.

The final plat for the Sunset planned unit development must be filed, and Security Land Trust must post the $2 million irrevocable letter of credit to guarantee construction of a grade separated intersection at Sunset Parkway. This amount would be placed in escrow seven days from the date of sale and once Park County has deemed Security Land Trust to be a reasonable buyer.

Security Land Trust must also honor Kanne's contractual arrangements with the Will-O-Wisp Metropolitan District for dealing with water and sewer taps as well as improvement to the water treatment facility.

A number of liens have been filed against the project which must also be satisfied. These include liens from Peak National Bank, Dorsey & Whitney LLP and TSR Group. Kanne also owes Park County outstanding taxes on this real property.

Sender and Bond have asked that specific objections to the sale be filed with the court on or before June 14.

In response to the motion, Park County Stephen Groome wrote to Kanne stating: "Due to the significant passage of time since the December 5 deadline (and your bankruptcy filing), we are not certain of the status of the Subdivision Improvement Agreement.

Therefore, we do not feel comfortable taking any action regarding your request to approve an assignment of the agreement until the Bankruptcy Judge has ruled on the issues."

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