Downtown developers face suits over unpaid bills

The company that a month ago unveiled plans for a $500 million transformation of Camelback Road through downtown Scottsdale has been sued four times this year for unpaid bills.

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International Capital Partners, or ICP, owes a bank and an investment company more than $3 million in unpaid loans, according to lawsuits filed in Maricopa County Superior Court.

Click to view a map proposed developments in downtown Scottsdale

In addition, a rental car company won a $36,000 judgement against ICP in March for unpaid bills and Scottsdale Fashion Square filed suit June 23 asking for $160,000 in unpaid fees for maintaining common areas shared by the company’s headquarters at 6909 E. Camelback Drive and the mall.

The company hasn’t paid those fees or its water bill since November, the suit alleges.

Meanwhile, the company is selling prime freeway property along the Loop 202 Santan Freeway to the city of Chandler. The Chandler City Council on Thursday approved spending up to $12 million to purchase 31 and 1/2 acres at Kyrene Road and Loop 202.

ICP’s Chief Executive Officer Tom Donahue, did not answer questions for this story when contacted by the Tribune.

On June 3, ICP unveiled its long-range plan to transform a section of downtown Scottsdale into a destination for adult living, diners and financial workers.

Dubbed The District on Camelback, the $500 million project would be on the north and south sides of the road between 68th Street and Goldwater Boulevard and would include 2 million square feet of residences, a boutique hotel, amphitheater and offices.

The plan also includes the site of the abandoned Orchidtree Apartments, which have sat vacant for nearly a year at the southeast corner of Camelback Road and 68th Street.

But the same day, June 3, that Donahue was speaking with the Tribune about the District on Camelback, MDJS Investments filed suit, alleging that City Block, a company associated with ICP and led by the same executives, had not repaid a $1 million loan.

The Scottsdale Fashion Square filed its suit demanding payment June 23.

Two days later, according to court records, Commissioner Barbara Hamner of Maricopa County Superior Court signed a default judgement against ICP, whom National Bank of Arizona alleged owed more than $2 million on a $5 million loan.

Nancy Cantor, a member of Scottsdale’s Housing Board and a former Orchidtree resident who helped relocate tenants on behalf of ICP, said she was aware of the recent legal actions against the company.

“I don’t see how that (The District on Camelback) is going to come to fruition,” Cantor said. “That’s a pipe dream as far as I was concerned.”

Scottsdale Councilman Jim Lane said he’s distressed by what he sees as the premature vacating of the Orchidtree property.

“It left us with an abandoned piece of property, which is always a problem,” Lane said.

Scottsdale Mayor Mary Manross did not return a phone call seeking comment.

Donahue described the long-range master plan as a “unique mixed-use project catering to the active adult.” The company’s goal is to develop the area over the next 10 to 15 years, he said.

Donahue last month said the company was in serious negotiations with a New York-based restaurant company that would open a penthouse restaurant at the top of the 11-story Amtrust building, the company’s headquarters.

The Tribune is a tenant in Camelback Executive Park, which is owned by ICP and is part of the District on Camelback master plan proposal.

As for the Chandler land deal, Christine Mackay, Chandler’s director of economic development, said the city sought out ICP for the sale between two and three months ago.

Mackay said Chandler wants the land to have complete control of its development.

Chandler wants to make sure the land generates good jobs and relying on zoning restrictions for another owner would not guarantee that.

Chandler has 90 days to back out of the deal if problems surface during due diligence and environmental testing of the site, Mackay said.