Chandler officials are considering what to do when building permits on a troubled high-rise project are allowed to expire next week.
Developer Jeff Cline, of Signature Properties West, said Thursday he won’t make the Tuesday deadline to resume work, meaning the permits will expire on what was supposed to be Chandler’s tallest building at 10 stories.
Construction on Elevation Chandler, a planned high-rise with condominiums, luxury hotel and health club, began last November. But work ceased in April, and the unfinished skeleton of steel beams and concrete floors has sat untouched next to Chandler Fashion Center mall with only eight floors built.
In a statement released Thursday, Cline blamed “some additional stipulations required to close and fund the project” for the four-monthlong work stoppage.
Cline, who would only answer questions via e-mail, has maintained the project will move forward once additional financing is finalized. He told the Tribune in late July that work would resume in the “next few weeks.”
Approximately $5.8 million in liens have been been filed against the property by contractor Weitz Co. as well as several subcontractors.
“Provisions are being made for 100 percent re-payment of all liens within a fairly short time,” Cline stated in an e-mail.
Mayor Boyd Dunn said Cline told him that the project has had money troubles.
“I guess it’s going through some sort of foreclosure or default, but he’s getting some sort of bridge funding or financing to just basically prevent him from losing control,” Dunn said.
Cline acknowledged in his statement Thursday that he’s in negotiations with the project’s original lender regarding a foreclosure filing.
Cline said he will reapply for building permits in November and expects to have the financing required to continue in the next two months. The hotel and health club are now expected to open sometime in early 2008.
“It’s a project that will certainly be a benefit to the community, whether Mr. Cline does it or someone else,” Dunn said.