Investors are pulling out of the proposed Telegraph Hill mixed-use project in Fredericksburg, Va., and its developer has filed for chapter 11 protection, The Free Lance-Star (Va.) reported yesterday. Fredericksburg Park LLC, the company local developer Andy Garrett formed to build Telegraph Hill, filed a voluntary petition for chapter 11, but Garrett said he is not giving up on the project. Garrett says inaction by city officials led to the problem. But the city’s development administrator says the city is working quickly to approve a new plan after Garrett failed to meet a deadline to move forward on his first plan, which the city council approved in 2013. The proposed mixed-use development encompasses 29 acres in Fredericksburg. Plans call for 81 single-family homes, 45 townhouses, 295 apartments and 75,000 square feet of retail space. Garrett said investors and creditors are seeking $3.5 million. Bowman Consulting Group is the largest creditor, with an unsecured claim of $369,141.38. Garrett said in his 30 years in development, it is the first time he’s had to use bankruptcy to keep a project alive. “But you play the cards you’re dealt and this was the one I was dealt,” he said.
