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Letter to the editor

Development goes on despite reorganization

Engle Homes' parent company files to reorganize, but work on area projects continues.

By BILL COATS, Times Staff Writer
Published February 8, 2008

LIVE OAK PRESERVE 

If the developer's in bankruptcy court, is the development adrift?

Not at all, homeowners in Live Oak and the Hammocks have been told by Engle Homes.

Engle is conducting business as usual, said Kurt Callarman, a homeowner in Live Oak and president of the Oakwood Village association.

"They're still doing the warranty stuff," Callarman said. "They're in the process of doing two new speed humps."

Engle's parent company, Hollywood-based Tousa Inc., filed last week to reorganize in federal bankruptcy court in Fort Lauderdale. Two days later, the bankruptcy judge let Tousa borrow up to $135-million from Citigroup Global Markets to pay operating expenses.

Tousa, a nationwide home builder heavily invested in Florida, declared total assets of $2.28-billion and debts of $1.77-billion.

Callarman noted that Live Oak Preserve, with nearly 1,000 homes, is 60 percent built out.

If Engle departed, "We're at a point where we could be self-sustaining," he said.

Engle's Tampa-area president wasn't available for comment. But Tousa, in a series of questions and answers posted online for customers, argued that the bankruptcy filing will improve the corporation's operations.

"The cloud of uncertainty has been removed, and we can focus our time and energy exclusively on our home building activities," Tousa wrote.

Tousa paid $857-million in August 2005 for Transeastern Homes, at what later proved to be the peak of the recent housing boom.

When the market slumped, Tousa became unable to pay its debts.

Tousa folded Transeastern, the original developer of Live Oak and the Hammocks in New Tampa, into Engle last year.

Bill Coats can be reached at 813 269-5309 or coats@sptimes.com.

[Last modified February 7, 2008, 07:40:59]