This morning, just as the Tucson Weekly was going to press, a local real estate blog reported that Saguaro Ranch owner Stephen Phinny has defaulted on the $50 million loan he received in 2006 from New Jersey-based Kennedy Funding for his high-end development in the Tortolita Mountains.
We confirmed the report, finding a "notice of substitution of trustee" that was filed with the Pima County recorder on Dec. 24. The notice appoints Katharine Burns Milliman, a Tucson attorney with Fennemore Craig, as successor trustee--an early step in foreclosure proceedings on the 1,035-acre development.
Life, however, goes on for neighbors who are suing Phinny regarding a public-easement dispute. That remains on the docket to go to court on Jan. 26.