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Developer Burton-Katzman files for Bankruptcy

In a move that shouldn’t come as much of a surprise to those who have been following the very public fight between the city of Dearborn and developer Burton-Katzman, three of the Bingham Farms corporate entities have filed for Chapter 7 bankruptcy.

The bankruptcy includes West Village Commons LLC, the entity developing a mixed-use project in Dearborn. The LLC lists $3.5 million in assets, mostly land, and $11.2 million in secured and unsecured debts, according to Crain’s.

West Village Commons LLC is one of three of the Bingham Farms corporate entities controlled by Peter Burton, Bob Katzman and other investors who filed for Chapter 7 bankruptcy on Thursday.

We have written here many times about the court fight between Burton-Katzman and the city of Dearborn, in which the city won a court order to force the developers to complete two buildings agreed to under a contract with the city. Even the 75,000-square-foot building, currently on the site, isn’t fully developed.

The bankruptcy move by Burton-Katzman was no doubt a way to avoid having to abide by that court order to finish the Dearborn development.

Also filing is Westminster Homes LLC, a home development arm used by the group of investors, which lists $225,000 in assets and $1.4 million in debt, according to Crain’s.

Burton-Katzman Development Co. also filed bankruptcy, but it apparently has no assets.

This entry was posted on Monday, August 30th, 2010 at 9:29 am and is filed under Business. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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  • Donna Hay

    I’m actually surprised that it took them so long,

  • tdogg

    “Wow – who could have seen that one coming?”

    BK – the original preferred developer – throws in the proverbial towel and takes its Dearborn problems to the next set of lawyers and judges. So glad we invested all that money in legal fees to get this far in recouping all the money we invested in this development. “Money well spent” eh?

    Boy, and that Order Compelling Construction – that really did get the job done. Let’s go frame it, and put it up next to one of the original HF “the dream is over” posters. (I suspect a whole new set is at the printers.)

    You would think that the City would require BK to have bonded the completion of their obligations under the contract, and that some insurance company could be forced to pick up the completion costs.

    Calling Dearborn Legal – “now what, Deb?”

  • Hakim

    Looks like Dearborn once again won the battle, but lost the war (as usual). Keep up the good work Big Boy, and your yes men and women.

  • Dude where’s my pool

    Now do you trust this Mayor to build a convention center?

  • Anthony

    Indeed Mr tdogg. THAT is the $64,000 question: “Where was the insurance bond?” A city construction of that magnitude with no bond in sight to protect all interests? That is too amazing in itself to believe. Would LOVE to have seen that original contract. Looks like both sides are deep in it.

  • Sloppy Joe

    All the readers of this site must start to attend the Dearborn City Council meetings , to personally question all the current “so called leaders” about all the agenda items that involves the wasteful spending of residential tax dollars… not until then will any of this type of misspending & contract awards end ! All you have to do is fill the room & the Mayor and the Council will change their mind…”Save Our Pools”. Here is a new one for you … T.W.C.S.O.C…Together We Can Save Our City !!

  • Diogenes

    I think this whole project started under mayor Guido and the person responsible for the contract is no longer there. It is interesting that the same thinking went into the parking meters and the failure to plan for curb cuts. unqualified people make wrong decisions.

  • Bill

    Diogenes is on the right idea. Suddenly, there seems to be an explosion of incompetence and incredibly poor decision making that has blossomed in this city. Why? What, if any, is the amount of money Dearborn (or I should say the taxpayers) on the hook for with Burton Katzman’s filing for bankruptcy? Folks should start attending the council meetings and start asking hard questions. I bet we won’t get any answers.

  • Dearbornette

    The real questions should start at the voting booth: someone voted for that guy! When he and his cronies get an overwhelming win at election time, they feel free to continue their wreckless course. As far as O’Reilly is concerned, he is there until he feels like leaving and that’s exactly what the voters have let him believe. Anyone feel like a recall? Didn’t think so.

  • SameAsitEverwas

    If people would attend the council meetings you would be amazed how many 50..80…100,000 items are passed every month in this city!
    S.O.P. has to raise donations to keep pools open while the council and the dearborn mack daddy just keep blowing tax money on outrageous projects and interest groups.
    Someone needs to look into how much tax payer money Plant Moran has padded their pockets with from the last two regimes. I think their only purpose is to get paid a lot of money to keep telling the mayor what he wants to hear,its a great gig at our expense.
    Whatever candidate steps up for the next Mayoral election and vows to cut the wasteful spending and rid the city of money suckers like plant moran and other useless contracts is sure to get my vote!

  • Milwood Fordson

    Look to Mark the Magic man in the Mayors office. ran this city under the last mayor and still does under this one. Oh and lets not forget the creative numbers from the man in the finance department.who is providing the our tax dollars for this spending. he find $$$ for thier wants and pet projects and then wants to cut the pools, libraries, parks and rec (- homecoming), staff etc….