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The Salt Lake Tribune
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.