Troubled Tradition developer looks to renegotiate big loans

May 17, 2009, Palm Beach Post, Troubled Tradition developer looks to renegotiate big loans, by Eve Samples.

Core Communities LLC, the company behind the Tradition community and Port St. Lucie's biggest developer, is trying to renegotiate two major loans as the value of its property has dropped.

Core's parent company, Fort Lauderdale-based Woodbridge Holdings Corp. (Pink Sheets: WDGH), warned in its first-quarter report last week that Core was dealing with "cash flow deficits" and said its lenders are seeking payments to more closely align two development loans with the depleted value of Core's land.

The deterioration of the real estate market and the possibility of those cash payments "raise substantial doubt regarding Core's ability to continue as a going concern," Woodbridge states in the filing with the U.S. Securities and Exchange Commission. And Woodbridge points out that it's under no obligation to inject cash into Core.

The grim assessment is a worst-case-scenario, Core officials in Port St. Lucie said. "It's management's opinion that we're going to be successful in negotiating these loans," said Core President Tom Babcock.

He noted that Core has $15 million in cash on hand. And he pointed to the success of Tradition's two major retail projects in western Port St. Lucie: the 600,000-square-foot Landing shopping center is 92 percent occupied, and the smaller Tradition Square is at 95 percent.

"The prognosis is good," Babcock said of Core's future.

Accused of selling hurricane-damaged vehicles without telling customers, the owners of a former Chevy dealership in Stuart have inked a settlement with the state attorney general's office.

Attorney General Bill McCollum announced last week that the onetime owners of John Jochem Chevrolet Inc. will pay $46,000 in restitution to about 48 customers. Other affected buyers have until mid-July to claim a portion of the money.

John Jochem, the founder and principal owner of the dealership, died of cancer in 2005. His widow, Hope Jochem, agreed to pay the restitution and $70,000 in legal fees, according to McCollum's office.

The Jochem family sold the 40-year-old auto dealership in 2006 to The Suburban Collection.

Still trying to figure out how last year's federal stimulus bill might help your business? The Business Development Board of Martin County is hosting a pow-wow to clue you in.

The session, from 10 a.m. to noon Friday, is at the Realtor Association of Martin County's headquarters in Stuart. RSVP by calling (772) 221-1380.

Eve Samples covers Treasure Coast business. Contact her at The Palm Beach Post, 2101 S. Kanner Highway, Stuart, FL 34994; (772) 223-3559; e-mail at eve_samples@pbpost.com.

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