Settlement reached over bankrupt Joaquin Village in Provo

(Daily Herald) A settlement was reached Tuesday between a partner and the developer of Joaquin Village, a proposed student housing project in northeast Provo that's been stalled for more than a year because of the recession and tighter lending standards.

A dispute over financing terms for the construction of Joaquin Village resulted in its developer, Joaquin Development, filing for Chapter 11 bankruptcy protection last month to block Peak Capital Partners from foreclosing on the 5-acre parcel.

But Tuesday's settlement will allow Peak to go ahead with the foreclosure under certain terms and conditions, said Stephen Stoker, Joaquin's bankruptcy attorney.

"There were terms that were agreed to that were acceptable to Joaquin," he said.

Tuesday's settlement is pending approval of the U.S. Bankruptcy Court.

Joaquin, which is managed by Wayne Ross, president of Arrowstar Construction, claims it was forced into bankruptcy after Peak Capital allegedly duped the developer into thinking it was making an equity investment when it provided $12 million in project financing.

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