Bankruptcy complicates disputed Frognal Estates development
PICNIC POINT Backers of the controversial Frognal Estates development filed for Chapter 11 bankruptcy Thursday in hopes of reviving the 15-year projects faltering financials.
Frognal Holdings LLC, which owns the 22-acre property near Picnic Point Road, owes $11.3 million to more than a dozen creditors, according to a petition the companys attorneys filed in U.S. Bankruptcy Court in Seattle.
Once forested and now covered with stumps, the site was approved for a 112-home subdivision over the objections of neighbors, who argued the development would create landslide risks on steep and environmentally sensitive land.
Developer John Lakhani insisted in a Friday text message that the project will still go forward as planned.
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