DRAPER — The SunCrest development on Traverse Ridge has hit another major bump in the road.

An aspiring developer of the troubled hilltop community abruptly ended negotiations for its purchase on Tuesday just hours before the city council was scheduled to vote on moving forward.

In a letter, Raddon Bros. Construction told the council that infrastructure issues brought up by city staff at the last minute "(make) the purchase of the property no longer financially feasible."

However, Draper officials had not spoken with the company Tuesday evening. Council members hope the misunderstandings brought to light by the letter can be cleared up so the deal can get back on its feet.

"We've spent a heck of a lot of effort trying to make the deal work," Draper Councilman Bill Colbert said.

Raddon Brothers and its partner Ball Ventures, acting together as R&B SunCrest LLC, had been planning to buy the property from Zions Bank, which acquired the land as part of the bankruptcy settlement in September.

The 8-year-old development is only about halfway complete. It has been plagued by geological problems and widespread public disdain.

The local construction company has been trying to acquire the undeveloped part of SunCrest since before it was handed over to the bank.

R&B has spent more than $200,000 in legal and engineering fees since then in an effort to complete "due diligence," before committing to the purchase, according to the letter.

The would-be developer also held several meetings with city officials and current SunCrest residents within the last few months.

Draper city had been planning to sign a memorandum of understanding with R&B Tuesday evening. The agreement would have required R&B to rebuild Deer Ridge and work with the city toward fixing other shoddily constructed roads.

To complete build-out, R&B would also have to spend about $7.5 million on water infrastructure.

R&B also cited issues such as a drastic reduction in the number of buildable lots as a reason for pulling out.

Draper city manager Layne Long said those matters had always been part of negotiations, but conceded that talks in recent weeks focused more on SunCrest Drive, which could cost R&B around $8 million to fix.

If it purchased the land, R&B would be responsible for things such as the roads and water infrastructure because it would be required to approve the original master development agreement between Draper and SunCrest's first owner, Terrabrook.

Parts of that agreement could be modified but the deal would have to work for all parties, Colbert said.

Zions Bank and Ball Ventures referred questions to Raddon Brothers on Tuesday but its representatives did not return phone calls from the Deseret News and they did not attend Tuesday's meeting.

If no developer is found for SunCrest, Draper taxpayers could be left with prematurely disintegrated roads throughout the neighborhood. Residents of the hilltop community would also be left without a grocery market and fitness clubhouse, which they were promised when they bought their homes.

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E-mail: rpalmer@desnews.com