Some $7 million worth of missing bonds, which were supposed to be used to build an apartment complex in Clearfield, have been found in an insurance company in New York.
City Manager Don Baird said Monday that the money was tracked down in a company called Mutual of New York, and that the project may be completed after all.The city began probing the disappearance of funds last month when officials realized the project was not going to meet the December completion date.
But Baird said the project may soon get under way because another person has stepped forward and offered to build the 180-unit complex.
In 1985, the Clearfield Housing Authority issued $7 million in bonds to a development company called Heather Estates for the project. But the developer has thus far failed to seek a building permit and his attorney told the board earlier this month that his client had no idea where the money was.
Baird said the city tracked down the money and all is secure. He said developer Gary Routh did sell the bonds, but failed to secure a commercial loan to build the project.
Baird also said that people who purchased the bonds are being paid on their investments.
And the city manager pointed out that Routh may now be out of the picture because another person has offered to complete the project.
The housing authority is expected to discuss the project with the unidentified man at its meeting Tuesday night.