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Company defaults on $35 million loan for home building

| Thursday, Apr 24 2008 7:00 PM

Last Updated: Thursday, Apr 24 2008 7:00 PM

The Sacramento-based developer behind a half-built Wasco neighborhood and several other troubled projects in Kern has defaulted on a $35 million construction loan, documents recorded Tuesday, March 18, show.

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Reynen & Bardis Wasco LP, one of dozens of companies statewide affiliated with longtime homebuilder Reynen & Bardis Communities Inc., has fallen behind on a 2005 loan from Guaranty Bank, public filings show.

As of Feb. 27, the developer owed more than $5.2 million in payments and fees.

The money was borrowed against a site near the intersection of Central Avenue and 7th Street, south of Highway 46. No development has taken place there, though Wasco officials have OK'd construction of 246 homes.

Reynen & Bardis has another defaulted Kern project in northeast Bakersfield. Lender River City Bank is currently suing over the $6.9 million debt.

The firm missed payments on about $240,000 of Kern property taxes in December, a Californian examination of property and tax records found.

Liens and lawsuits from unpaid building companies have piled up at various sites, including the partially finished Hidden Grove community in Wasco. A half-dozen or so families there now live on the only finished street in the subdivision after construction was halted in late 2007.

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