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Published on 03/31/1999 All articles from this issue

Tree Farm faces involuntary bankruptcy

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By Joanne Griffith Domingue / Town Crier Staff Writer

The Tree Farm Associates, LLC, face involuntary bankruptcy resulting from a claim filed by a Belmont-based engineering firm.

Robert J. Simmons, president of the Belmont firm of RJS Associates, claims his company is owed $156,000 for "providing labor services and materials," according to court documents filed March 12 in U. S. Bankruptcy Court in San Jose.

RJS was going to do the underground construction for the Tree Farm project, said Los Altos resident John Challas, who was project manager for the Tree Farm until he resigned last fall.

RJS "did do the plans, and he is owed the money," Challas said. But not the $156,000 claimed in the court documents, Challas said. Challas said the amount is more like "$40,000 to $60,000."

A spokeswoman at RJS said the firm does structural engineering and design plans. For the Tree Farm, "The developer approached us. We do design/build work, which is different from bid work," she said.

The Tree Farm project, one of the largest in the city's history, included a three-story office building, a 131-unit residence inn and eight below-market-rate rental condos on a 4.5-acre parcel at 4434-4444 El Camino Real.

For two years Tree Farm plans threaded their way through neighborhood meetings and city hearings.

In October 1998 one Tree Farm associate, Los Altos resident Beverly Brockway, sued the other two, Oliver Linn and John Challas, alleging mismanagement and misuse of funds. In the suit she asked that the land be sold.

Since then, the project has been in a legal limbo of complaints and cross complaints.

Brockway declined to comment.

Court officials said that involuntary bankruptcy is unusual.