Just as folks in San Francisco are beginning to wonder if Lennar is planning to mothball the Hunters Point Shipyard in face of a $25 million funding gap (reportedly related to lowered land prices), comes word that folks in Vallejo are beginning to wonder what Lennar Mare Island’s June 8 bankruptcy will means for their city’s already strained finances.
On Sunday June 8, Lennar Mare Island LLC, which has been involved in redeveloping the former naval station at Mare Island for eleven years. petitioned for a Chapter 11 bankruptcy, along with its parent company LandSource and 19 other Lennar-related subsidiaries.
The move came several couple of months after LandSource defaulted on a $1.24 billion loan–and five days after the June 3 election, in which Lennar Homes of California spent $5 million to pass Prop. G, which gives it the right to develop luxury condos at Candlestick Point, as well as at Hunters Point Shipyard.