Shipyard Deal Goes Into Bankruptcy

JACKSONVILLE, FL -- LandMar, the owner of the 40-acre riverfront property known as the Shipyards, has filed for bankruptcy.

The filing happened earlier this week in a Texas bankruptcy court.

LandMar's parent company, Crescent Resources, LLC, says the decision was made, "As part of its ongoing strategy to reduce the company's debt level and improve its capital structure."

The company says it will continue to operate, "Without any significant interruption during the restructuring process."

The City of Jacksonville will now take ownership of the property.

"This wasn't a surprise," says Cindy Laquidara, of the General Counsel's office.

Laquidara says LandMar missed it's last payment of about $3 million. Her job now, "I'm gonna go get every penny I can get."

Laquidara won't talk about how much. But she does say the deal had about $40 million in tax exempt financing.

"I don't want to talk too much about the specifics because we're trying to get the money that is due us, and that's a complicated matter."

The City is covered for a little while because of a letter of credit it worked into the deal if there was a defaulted payment. "This year's loan payment is covered so it's giving us time to then go after them, looking for assets."

As for what will happen to the property now, Laquidara says the City has a number of options. It can find a new developer, sell the land off in pieces or just hold on to it until the market turns around.

The Shipyards has been a troubled project for years. The original developer, Tri-Legacy, backed out of the project after spending more than $30 million of the City's money.

The Shipyards project was to be part of Jacksonville's billion dollar mile. The $450 million project was supposed to include office space, residential units and marina slips.

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