Zions Bank Filed Lawsuit Against Draper

According to what I have been told, Zions Bank filed this lawsuit on June 11. It's only hitting the media now, but it seems that Zions has no intention of either hiding or publicizing their intentions, giving us not much information to go on. At the most recent SunCrest Owners Association meeting of the Board of Trustees, Ralph Matson informed us that two trustees associated with Zions Bank would no longer hold the position of trustee. That leaves just two individuals from Zions Bank on the Board of Trustees, Ralph Matson and Gena Jones. Ralph's email address is Ralph.Matson@zionsbank.com and Gena's email is Gena.Jones@zionsbank.com if you have any questions regarding the SunCrest development that I cannot answer, or if you have any questions you would like addressed directly by a representative from Zions Bank. Zions Bank has not kept the OA nor SunCrest homeowners, informed about these recent developments, including the lawsuit.

If you read the comments attached to this article, you will find the usual assortment of SunCrest-bashing, poorly informed and filled with hate. While I find these false allegations very offensive, I try to remember that we live in a beautiful, unique place. Almost everyone who lives here behaves in a friendly, neighborly way. Almost everyone tries hard to follow the rules and guidelines, to be considerate of each other, and to behave with maturity and honor. There may be some rough days ahead, filled with nasty insinuations that will be eagerly repeated by a few reporters desperate to fuel conflict. It's only my opinion, I know, but I'd love to see us all behave with dignity and decency in keeping with our lofty surrounds. We already have the mountains -- let's not hack things down to molehills, please.
You are always welcome to email me directly, of course, at barbarablackmer@comcast.net
-- Barbara

Zion's Bank sues Draper over SunCrest

By Christopher Smart

The Salt Lake Tribune

Updated: 06/25/2009 11:15:23 AM MDT

Zion's First National Bank has filed a $25 million suit against Draper in 3rd District Court, alleging the city mismanaged the 4,000-acre SunCrest development that is now in bankruptcy.

"Draper appeared to be poorly managed, overwhelmed by the size and scope of the development and repeatedly failed to comply with its obligations to SunCrest ... " the suit states.

The city's "interference and wrongful acts" eventually led SunCrest to bankruptcy, the suit claims.

"SunCrest defaulted on loans and ultimately represented to Zions Bank that it had no intention of curing its defaults."

Further, the action states that Draper "repeatedly sabotaged negotiations with potential developers" to take over the development.

Draper officials could not immediately be reached Thursday morning for comment.

The suit states that Draper's failure to perform its obligations as required by the SunCrest agreements have damaged Zion's Bank in an amount no less than $25 million.

csmart@sltrib.com