October 25, 2012

Outlot 2 development resets

Outlot 2 development resets
By Jerry W. Kram

The quest to develop Outlot 2 was reset after the New Town City Council terminated its contract with the developer who was unable to secure funding to build duplexes on the 14 acre lot.
Steve Kovacs of Las Vegas had been trying for most of the summer and fall to line up financing to start construction on the project. At its September meeting, the council gave Kovacs until Oct. 1. to secure funding for the project or the council would look elsewhere. Kovacs was unable to come up with the money so at its regular meeting on Oct. 17, the council formally cut ties with Kovacs.
The council heard a new proposal to build the project from Eagle Rock Timber Inc., of Idaho Falls, Idaho. Rich Gokey and Holland Dredge told the council although they were the contractors who were to have built the development for Kovacs, they had been approached by other financial backers interested in the project. However, Eagle Rock couldn’t respond to any of those backers until the city formally terminated its contract with Kovacs. Dredge and Gokey presented a new development plan to the council.

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