Tehachapi News

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Residents of Tehachapi’s Alta Estates have been complaining about unanswered requests for repairs to their completed homes. Since Empire Land Company filed bankruptcy on April 25, when, or if these repairs will be taken care of is now up in the air. Meanwhile a large section of the development also sits unfinished.

Empire Land and its affiliates Empire Residential Sales/ Prestige Homes build so-called master-planned communities, large-scale projects that include commercial buildings and schools, in California and Arizona. Prestige is the home building entity and developers of Alta Estates, in Tehachapi.

"A severe tightening or loss of financing for the entitling and development of land and the resulting pressures that were placed on the debtors' cash flows, resulted in the action,” according to a statement by CFO Neil Miller in court documents.

The plan is to liquidate assets within six months, according to Empire’s attorney, Richard Pachulski.

An attempt to reach Alta Estates directly was unsuccessful as the phone has been disconnected.

In mid- March, Dustin Schilling, of Prestige Homes, had confirmed for the Tehachapi News that the developer had put a halt to building in Tehachapi.
“We have stopped building in Tehachapi. The downturn in the economy and the housing market has hit all of the builders hard,” Schilling said.

Residents complained that the streets still need finishing and there are drainage issues.

On May 6, Interim Tehachapi City Manager, Garrett told the News, “I have sent a letter to the company giving them 10 days to respond to the infrastructure and bond issues. We’ll see what they come back with. Once these things go into bankruptcy we’re just a creditor and it has to go through the courts.”

He continued, “It’s not like we’re going to finish the tract. It’s a long, drawn out process. Bonds are an insurance policy and insurance companies don’t like to write checks. So I’m sure we’ll be sitting at the table discussing these matters with Empire and their creditors.”

Alta Estates, by Prestige Homes, is located between Pinion Street and Highline Road, west of Curry Street.