Planned Metro Air Park four-hotel project files for bankruptcy
Ownership for one of the first proposed non-industrial projects in Metro Air Park has filed for bankruptcy.
Ownership for one of the first proposed non-industrial projects in Metro Air Park has filed for bankruptcy.
Cosmo Hotel Management LLC, which proposed a four-hotel project on Elkhorn Boulevard in 2018, listed about $31.8 million in liabilities in the April 21 filing in U.S. Bankruptcy Court for the Eastern District of California. It listed no assets.
Though the filing lists undeveloped land at 4570 Elkhorn Road as Cosmo Hotel's address, the 2018 application with Sacramento County lists a company address in Frisco, Texas. Representatives of the company couldn't immediately be reached for comment.
Harry Gill of HBG Law PC, in Aliso Viejo, listed as representing Cosmo Hotel in the bankruptcy, didn't return an email seeking comment.
The single largest secured claim listed in the filing is $24 million owed to State Bank of Texas, with a lien listed against the deed of trust for a property at 4570 West Elkhorn Blvd. That same address appears in other places in the bankruptcy filing as well, even though the original proposal was for 4750 West Elkhorn Blvd.
Further, a site plan within the application shows the actual project site on the northeast corner of Skyking Road and Bear Paw Road, north of where Bear Paw meets West Elkhorn.
Cosmo Hotel filed under Chapter 11, which typically is done to restructure debts rather than liquidate an entity, suggesting the hotel project may still be alive.
According to county records, Cosmo Hotel proposed four hotels, with a total of 382 rooms, on 7.36 acres at 4750 Elkhorn. Those hotels at the time were planned as a Candlewood Suites, Springhill Suites, Tru by Hilton and an extended-stay hotel.
As recently as August 2023, the county's subdivision committee approved a tentative parcel map for the project.
However, property records indicate the property for the project has been in foreclosure since at least April 2023, with a rescission in June 2023, then another notice of default in March 2024.
In June 2024, a trustee's sale of the property was scheduled for July 11, 2024. Records don't show any subsequent transactions involving the property, suggesting it's with the same ownership even though the loan is in arrears.
Despite several hotel and highway-serving commercial proposals for Metro Air Park in the last seven years, none has broken ground. Some observers have cited high infrastructure costs as difficult for non-industrial commercial developers to pay for.
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