Embattled developer Bill Levy pulled a last-minute rabbit out of his hat late Monday, notifying City Hall that he’d obtained a $115 million loan to begin — and hopefully complete — construction on a private redevelopment project to transform the lower three blocks of State Street into a glimmering oasis of upscale Ritz-Carlton timeshare condos. Levy’s ability to obtain financing has been seriously doubted, as he’s sought permit extensions three times since first receiving city approval five years ago. Levy was granted yet another six-month extension this Monday. If he fails to begin construction by December 12, his controversial timeshare plan will effectively be dead.
At a time of rising interest rates and through-the-roof construction costs, Levy managed to secure financing from Mountain Funding, LLC, a company that specializes in making “hard money” development loans. Often such loans are for shorter durations and cost considerably more than standard financing. According to Community Development Director Paul Casey, Levy’s representatives indicated construction would likely begin in two months. Casey has insisted Levy’s demonstrate he has enough money to finish the job before he begins construction. Over the past few years, Levy has been dogged by exasperated investors suing to get their money back. Attorney Pete Bezek — who represents many such investors — said now that Levy has secured financing, perhaps he’ll return $11 million of investor money he and his partners have improperly spent. Levy was out of town and not available for comment. His partner, Roy Millender, could not be reached.
— Nick Welsh