I've heard "rumors" (I say rumors but my source is rather reliable) that KL kicked GM out yet again. I was told that they still have the lots they've already purchased but once those are gone, they are out of DB yet again. KL supposedly is very unhappy with them. Wonder if this explains the lack of construction on the flats. Of course I know they've hit hard times as well so I'm sure this will put them out of business. Sad to see a business go under but I'm not sure I'm all that surprised to hear they've butt heads with KL yet again. Anybody else hearing anything along these lines or have more information???

I have heard rumors as well...about them not being able to get construction loans...I might do a write up on this, lets see if anyone else knows anything first.

Joe, the rumors I've heard aren't related to the inability to get the construction loans. While this certainly may be playing a role, I was told KL is unhappy with GM as a whole and revoked their lot buying privelages. Supposedly they had quite a few reserved and KL took them back for other builders to purchase. I've also heard rumors of course regarding their status as a company. Including the fact that they have a rather new office building that is family owned. I can only imagine what is going on with that as I'm sure the family members are getting anxious with the status of the company. I'll be interested to see the outcome of all of this and hear what others have to say!

I have heard from several sources that they are in bad shape financially. I'll be very surprised if the lofts are ever built. FHA, which is the most likely source of funding for the buyers they are targeting, changed its guidelines late last year, making it much more difficult to obtain funding. These guidelines require a certain level of owner occupancy and impose specific financial requirements of the project itself. In addition, the City of South Jordan has a requirement that a certain percentage (I believe it's around 30%) of the units be sold before construction can begin. Of course, Gold Medallion would still have to be able to obtain financing for the construction and eventual carrying costs of the building through the end of the sales process. If they are having trouble paying their subcontractors, I doubt that any lender will be willing to give them a multimillion dollar loan on a project that is even 30% sold. I just hope they don't get approval to start building something and then run into some kind of problem to leave us with a big half-finished white elephant.

Oh, I'm fully aware of their financial struggles (from not paying contractors, to the family involvement, all the way to the staff, or lack of it!) . However, do they even own the land for the lofts? What I'm hearing is regarding their status with KL, without regard to their financial situation. If they hadn't purchased the land for the lofts from KL yet, then whether they can pull financing off or not, they won't be building them. Their current status from my understanding is to fullfill their current obligations on purchased land and then their relationship with KL is to be terminated. I'd be interested to know what land they do currently own.

The Salt Lake County Assessor's office website still shows Kennecott Land as the parcel owner.