LEVY PROJECT FUNDED

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