Developer's debt halted Pasco project

Developer Doug Weiland has appeared before the Pasco County Commission numerous times seeking permission to start grading a portion of his Ashley Glen property so he could sell it for $9 million to an apartment developer.

Now, he says he can't afford to grade the 43-acre site. That was just one of many revelations in bankruptcy papers filed Friday for Ashley Glen, a proposed 2 million-square-foot office complex at S.R. 54 and the Suncoast Parkway. It was part of a 260-acre project that included several multistory office towers and 600 apartments.

"The Mass Grading will take 60 days. The permits are in hand, as identified above. However, Ashley Glen lacks the financing ($600,000) necessary to complete the program," attorney Albert Gomez wrote.

The Chapter 11 filing also gave a detailed account of Weiland's defunct Riverwood Estates project, on U.S. 301 south of Zephyrhills. Both cases were consolidated with the existing bankruptcy case for another of Weiland's projects, Summit View.

Mercantile Bank initiated foreclosure proceedings against all three projects in February after Weiland missed two mortgage payments. The bank has appealed to a bankruptcy judge to prevent Weiland from operating a borrow pit on the Summit View property so that he could sell 300,000 cubic yards of fill dirt.

In both instances, Judge Michael Williamson has ruled for the developer, saying the court shouldn't deny Weiland the opportunity to earn money so he could pay his debts. Now Williamson will have to determine the likelihood that Weiland can successfully restructure his debt for all three projects and emerge from a mountain of debt.

Riverwood Estates, approved for 1,400 homes, was to be developed in four phases. It is the only one of the three projects where construction actually began. Weiland's JES Properties has already installed the roads and utilities for the first 180 lots, but Standard Pacific and Lennar Homes walked away from their contracts.

Standard Pacific forfeited nearly $2 million in deposits for the unclaimed lots, but Lennar is suing to recover $2.7 million. Various contractors who installed the roads, dug the ponds and built the entrance signs have also filed liens against the developer.