Fredericksburg Kalahari Project 'No Longer Expected'

Kalahari Resorts' $260-million project in Celebrate Virginia is becoming a thing of the past because of the lack of financing commitments.

In a rather embarrassing turn of events, a report from the Celebrate Virginia South Community Development Authority originally said that the project was "no longer expected" to come to Fredericksburg. When The Free-Lance Star business reporter Bill Freehling reported on the news, the report suddenly changed, with errors, to say the project is "not expected to (sic) developed in the district in the near term," and Silver Cos. officials said it was just a misunderstanding why the report said earlier the project was dead.

• As of February 22, 2012, the Developer reports that the outstanding balance on the M&T Bank loan was $1,691,607.

• Annual assessments in the amount of $1,943,870 were to be collected in the 2009 tax year in two installments of $971,935 each and were due on September 1, 2009 and January 15, 2010. As of February 13, 2012, the City of Fredericksburg reported that annual assessments for the 2009 tax year in the amount of $636,663 remain outstanding, representing 32.8 percent of the total annual assessments due for the 2009 tax year. The City also reports that interest and penalties totaling $224,152 have been applied to the delinquent 2009 annual assessments through February 13, 2012. The City reports that annual assessments remain unpaid on two parcels owned by entities related to the Developer, representing 100 percent of the outstanding annual assessments for the 2009 tax year.

• Annual assessments in the amount of $2,927,754 were to be collected for the 2010/2011 tax year. The 2010/2011 tax year annual assessments were due in three equal installments of $975,918 each on May 15, 2010, November 15, 2010 and May 15, 2011. As of February 13, 2012, the City of Fredericksburg reported that annual assessments for the 2010/2011 tax year in the amount of $2,290,378 remain unpaid, representing 78.2 percent of the annual assessments due for the 2010/2011 tax year. The City also reports that interest and penalties totaling $542,048 have been applied to the delinquent 2010/2011 annual assessments through February 13, 2012. According to the City, 2010/2011 annual assessments remain unpaid on sixteen parcels. Of the sixteen parcels with outstanding assessments, fifteen parcels are owned by entities related to the Developer, representing 99.8 percent of the outstanding annual assessments for the 2010/2011 tax year.

• Annual assessments in the amount of $1,951,838 are to be collected for the 2012 tax year. The 2012 tax year annual assessments are due in two equal installments of $975,919 each on November 21, 2011 and May 15, 2012. As of February 13, 2012, the City of Fredericksburg reported that first installment annual assessments for the 2012 tax year in the amount of $775,516 remain unpaid, representing 79.5 percent of the first installment of annual assessments due for the 2012 tax year. The City also reports that interest and penalties totaling $98,877 have been applied to the outstanding first installment of 2012 annual assessments through February 13, 2012. The City reports that assessments remain unpaid on sixteen parcels. Of the sixteen parcels with outstanding assessments, fifteen parcels are owned by entities related to the Developer, representing 99.3 percent of the outstanding second installment of annual assessments for the 2012 tax year.

• Annual assessments in the amount of $1,951,836 are to be collected for the 2013 tax year. The 2013 tax year annual assessments are due in two equal installments of $975,918 each on November 15, 2012 and May 15, 2013. As a result, there are no delinquent assessments outstanding for the 2013 tax year at this time.

• As of December 31, 2011, the amount outstanding Series 2006 Bonds was equal to $24,278,000.

The city is ready for Kalahari. All zoning and permits are approved and the waiting game has been going on for more than two years now. But this new report, which even says the flopped U.S. National Slavery Museum is being developed next to the project, is forward-looking and at times misleading. The state was going to chip in a $30 million bond to help finance the project, but that didn't happen either becauase the developer was unable to get construction financing for the resort. The bond has since been returned to the state.