
The seller, who bought the site for $2.1 million in 2018 and spoke of building a 1,000-home, amphitheater-anchored community, ended up filing for Chapter 11.
The seller, who bought the site for $2.1 million in 2018 and spoke of building a 1,000-home, amphitheater-anchored community, ended up filing for Chapter 11.
“We owed a lot of money,” said Periodic Brewing founder Chris Labbe, who blamed the pandemic-induced closures of its taprooms.
According to court filings, The Mobile Growth Agency’s revenue dipped in recent years, from $1.5 million in 2017, to $950,000 in 2018 and $131,512 in 2019 by the time of the filing.
The lawsuit revolves around the former First Avenue Hotel, which is being developed into new residences after it sold at a bankruptcy auction for $6.6 million. Defendant David Zucker, CEO of Zocalo Community Development: ‘This is an entirely frivolous lawsuit.’
The firm has filed Chapter 11 just four years after being born from the bankruptcy of Gasco Energy, which was taken private and restructured in 2013.
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