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Rancho Palos Verdes's Terranea Project Out of Money

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The Daily Breeze is reporting that Los Angeles developer Lowe Enterprises is asking the city for $8 million to help cover operating expenses of its Terranea project, a 102-acre oceanside resort in Rancho Palos Verdes that is supposed open in June. "Under a proposal from Los Angeles developer Lowe Enterprises, the money would be repaid without interest to the city, which has been eagerly awaiting tax revenue from the resort. After an urgent plea from developer Bob Lowe on Monday night, City Council members said they recognized the time-sensitive nature of the request, but had deep misgivings about the plan." In addition to needing cash to operate the resort portion of the project, it's unclear how many of those 82 residential for-sale units will actually close sales. Meanwhile, according to the Daily Breeze, Lowe's "primary lender for the project is Corus Bank, the subsidiary of a troubled Chicago-based company that last week reported steep losses and faces potential receivership or conservatorship, according to news reports."

The Corus connection might be the bigger story: One only has to look at Corus's web site to see all the Los Angeles projects financed by this bank. Corus has given loans to area projects Solair, Evo, Concerto, and Little Tokyo Lofts, among others, as well as Glencoe Lofts (Corus foreclosed on that project). Both the CEO and Chairman have resigned from the company in the last month; according to the Chicago Tribune, the company bet "heavily on condominium development in such markets as Florida, California and Las Vegas and said the current "housing calamity" was worse than the severe downturn for which it had planned."
· Terranea developers ask Rancho Palos Verdes for financial aid [Daily Breeze]
· More Views of Terranea Resort in Rancho Palos Verdes [Curbed LA]
· CEO, chairman resign from Corus Bankshares [Chicago Tribune]