April 11, 2009 - Kasnoff Investments - Fountain Hills Town Square project, Fountain Hills AZ

Top Fountain Hills developer files for Chapter 7

A prominent developer in Fountain Hills has filed for bankruptcy four months after he was granted approval on a concept plan for a multimillion-dollar downtown project.

George Kasnoff, owner of Kasnoff Investments, filed for Chapter 7 bankruptcy in U.S. Bankruptcy Court in Phoenix on March 18. Calls made to his office and attorney were not returned.

In his filing, Kasnoff estimated he had between $1 million and $10 million in individual assets and liabilities. In a separate filing for Kasnoff Investment, LLC, the liabilities were estimated at between $100,001 and $500,000.

Kasnoff owns Waters Edge, an upscale restaurant in Fountain Hills. He has developed home sites across the nation as a general contractor and custom home builder.

Kasnoff is partnered with Tempe-based Nielsen-Fackler Planning and others to develop the Fountain Hills Town Square project. The $140 million mixed-use development would blend retail, restaurants and office space with a 12-screen cinema and condominiums on 13 acres southwest of Avenue of the Fountains and Saguaro Boulevard.

Kasnoff recently asked for a six-month extension on a development agreement with Fountain Hills. The project is behind schedule and he hasn't closed escrow on the property.

Fountain Hills business owners and residents have doted on the project as a potential pick-me-up for the local economy. Critics have regarded with caution the developer's request for incentives from the town.

In December, Fountain Hills had agreed to limit the cost of development and permit fees to $1 million and reimburse the developer up to $1 million for certain public improvements.

Original Story - Arizona Republic

September 22, 2008

Article on Fountain Hills Town Square project.

A 12-screen cinema, shops and offices could open as early as next year in the downtown Fountain Hills Town Square project.

Early plans call for loft-style housing atop retail and restaurants anchored by a theater complex on 13 acres southwest of Avenue of the Fountains and Saguaro Boulevard.

After months of tight-lipped negotiations, planners this week swiped away concerns about the project's once-ambiguous future.

Developer George Kasnoff said he has secured funding for the project estimated at $140 million.

Escrow on the property could close as early as Oct. 15 and as late as Nov. 15.

"We have finished our negotiations with the town and are now moving forward with concept plans," said project planner Dave Fackler.

At the heart of the project is a manicured "green space" with a meandering artwalk, sculptures and trees.

Developers are considering LEED (Leadership in Energy and Environmental Design) certification from the U.S. Green Building Council. The development would have to meet criteria for construction on energy efficiency and green standards.

Proposals to develop the vacant lot have come and gone.

In 2005, plans for a 14-screen movie theater, condos and retail died after the developer never submitted an application.

Planners face another hardship this time - a sluggish economy.

But Fackler, with Nielsen-Fackler Planning, said the economic downtown should not affect groundbreaking. Phase 1, which includes the cinema, retail and offices, is expected to open in late 2009.

Construction of the final three phases, mostly retail and housing, would depend on the market, Fackler said.

"We're financed," he said. "The market studies we've done indicate this is a highly underserved population."

Original Story - Arizona Republic