HOBART | Silverstone Crossing, a commercial property once called "golden" by city officials, remains at a standstill.
The property was scheduled for auction on Feb. 20 but that sale was stopped after one of the property owners filed for bankruptcy, attorney Rhett Tauber said.
Tauber filed a motion to dismiss with a hearing set in Hammond federal court on Wednesday to decide whether the auction can proceed as planned.
"Nothing can be done until that hearing," Tauber said.
Robert Stiglich, one of the owners, filed a petition for Chapter 11 bankruptcy reorganization just prior to the start of the auction, Tauber said.
"He (Stiglich) filed one previously and it was dismissed," Tauber said.
Tauber serves as the attorney for developer David Lasco. Lasco is one of three members of the investment group knowns as B-3 Properties, owners of Silverstone Crossing.
Silverstone Crossing, which has yet to be developed, is east of Mississippi Street and north of U.S. 30.
The B-3 Properties investors also include Stiglich and Suheil Nammari.
The City Council and Board of Works last month approved a three-year extension for completing Silverstone Crossing, noting the project has been stalled because of several factors, including the economy.
The original agreement between owners Diamond Veil Development and B-3 Properties LLC and the city was signed March 17, 2007, City Attorney Anthony DeBonis said.
Under that agreement, 30 percent of the area known as Pod E was to be developed within six years.
That deadline expired last month.
DeBonis said there would be no extension for the remainder of the property, which was to be developed within 15 years.
Although nothing has been built at the site, developers in the past have discussed a number of possibilities at previous Hobart Plan Commission meetings.
Those potential projects included a luxury hotel, a convention center and connected sports domes.
Stiglich, who has served as a spokesman for the Silverstone investors at city meetings, also owns an additional 30 acres which is part of Diamond Veil Development.
Stiglich couldn't be reached for comment.