Sale of SunCrest nears resolution

DRAPER — The sale of a ritzy housing development atop Traverse Ridge could be finalized a few days before Thanksgiving, representatives from Zions Banks and the development company Raddon Brothers Construction told the City Council Tuesday.

But before the sale of SunCrest can go through, Draper city, the bank and the proposed new owner must agree on how to fix more than $8 million in construction deficiencies on Traverse Ridge Road.

About half the funds could come from SunCrest's former developer, which abandoned the project during bankruptcy proceedings. Terrabrook purchased about $3.5 million in bonds to ensure the road, said Draper assistant city manager David Dobbins.

Another $1 million could come from Zions Bank, which acquired the property after the bankruptcy but is anxious to wash its hands of the project. The bank has also agreed to help Draper borrow money for the repairs, which could be reimbursed by the Terrabrook bond.

The rest of the money may come from impact fees charged for future construction projects in SunCrest, but that would require a change to the development agreement between the city and the project developer. Raddon Brothers' is willing to consider making that change.

At least some of the negotiation between the three parties is likely to occur behind closed doors due to a mountain of pending litigation. But regardless of discussions in the next few weeks, new construction on the ridge is unlikely for the next four to five years due to poor market conditions, said Ron Raddon, a co-owner of the Utah-based construction company.

— Rebecca Palmer