From Deseret News archives:
Judge approves sale of Geneva Steel land
Last week, Anderson Development LLC came away as the highest bidder in an auction for the Vineyard-based industrial site. The Sandy developer beat out a bid of $46.6 million by Utah Lake LLC, which had the financial backing of New Jersey-based Prudential Real Estate Investors.
Michael Hutchings, an attorney for Anderson Development, said the property eventually will be developed in smaller sections encompassing industrial, commercial, office and residential uses, with proposals to develop high-speed commuter rail tracks to run in the middle of Geneva's property.
Anderson Development, co-owned by Gerald D. Anderson and Hutchings, specializes in master planning and zoning of property for development. The Geneva transaction, Hutchings said, represented the company's biggest land transaction.
Demolition and equipment removal is ongoing. In 2004, a Chinese firm purchased Geneva's core steelmaking equipment for $40 million. All the equipment, Hutchings said, should be removed at some point in 2006.
"We are just very excited about this property," Hutchings said. "Utah County is the second-fastest-growing county in Utah. There's a scarcity of property in Utah County and we see a magnificent opportunity here. We've got three freeway off-ramps that will be servicing the area. That's a big advantage also."
Anderson must close on the deal by Dec. 27. Connecticut-based Contrarian Capital will provide debt financing for one-half of the $46.8 million deal. An unnamed Utah investor will provide the equity financing for the remaining half.
"This represents for us a culmination of over two years for trying to assemble this property," Hutchings said. "We've never chased a project like we have here for two years. We're paying what we regard to be a top-dollar price for this property."
According to the sales agreement, if Anderson Development fails to close on the deal, Utah Lake LLC will be allowed to purchase the property at $46.6 million, the next highest bid.
The sale of Geneva's land is expected to help pay off its unsecured creditors, who are owed roughly $75 million. Unsecured creditors will capture 50 percent or more of what they are owed, according to James Markus, Geneva Steel's Chapter 11 trustee.
J. Thomas Beckett, an attorney for the unsecured creditors committee, said last week he was very pleased with the sale. Beckett added that recovering 50 percent of what they are owed was "pretty extraordinary" for a steel company liquidation.
E-mail: danderton@desnews.com
Comments
- Redgraves recreates grandma in play 12:21 p.m.
- Can 65 be considered young now? 12:14 p.m.
- Marriage: having each other's back 12:13 p.m.
- Presidential libraries open history 12:04 p.m.
- Know any RMs playing in the FBS? 11:52 a.m.
- Dead Poets Society founder on tour 11:51 a.m.
- Considering adoption? 11:49 a.m.
- Social events become solitary 11:43 a.m.
- USA Today poll 11:33 a.m.
- US says sanctions possible for Iran 11:13 a.m.
- SLC council OKs gay rights policies
359 - BYU happy to escape with victory
212 - Editorial: Mormons and gay rights
200 - TCU creams U.
181 - Will state consider gay rights law?
148 - Letters: Strange breed in Utah
131 - Can BYU root for (ick) Utah Utes?
130 - Utes remain silent about BCS
120 - Celtics crush Jazz
104 - RSL heads to MLS title game
97
Sears is holding a special VIP night Sunday, Nov. 15, in stores and online.
Maybe someone out there can help me understand how raising the state...
will definitely played with a chip on his shoulder and played his heart out...
But Great? Just because they man-handled both the Y and Utah doesn't make...
Looking at where we are today... BYU is a top twenty program. Utah is not...
Wow, pretty harsh comments, "MVP of the game?". I think BYU showed some guts...
congrats guys! rimando was huge, olave crushed, will and kyle were all over...
re:Re:John Roberts | 9:21 a.m. I love all of your historical points, but...
Hillyard was exaggerating anyway, since they can't defeat ethics reform by...
Some maintain that the sin of Sodom was being mean-spirited, inhospitable and...
Thumping on Utah and Y does not make TCU worthy of #4 ranking. The MWC this...
I am a huge BYU fan, and saw the slaughter last night...Utah didn't belong on...


You can be the first to comment on this story.