According to a public notice filed March 9, Rice Ranch Ventures LLC has until March 29 to negotiate loan terms with Wells Fargo Bank, or the housing project’s undeveloped land will be sold at public auction.
In an interview with the Sun, developer John Scardino said he’s in negotiations with the bank to keep the $20 million loan. He said the status of the loan won’t affect the homes that have already been developed, because that property is “under separate ownership and a separate bank.”
Scardino said Wells Fargo is holding the LLC’s feet to the fire because “obviously, it’s taking longer to develop than we thought it would five years ago.”
Rice Ranch, a 589-acre parcel, is the largest development in Santa Barbara County and was first purchased in 2003. However, since the decline of the housing market, development has slowed. If the developers can’t reconcile with the bank, construction of the remaining houses won’t happen.
Despite this, Scardino remains hopeful.
“This year has been the biggest turnaround for us,” he said. “We are still building and selling.”
Scardino hopes negotiations will conclude soon, and he’s confident the bank will allow for an extension on the loan.
This article appears in Mar 22-29, 2012.