OGDEN -- The developer of the unfinished Earnshaw Building has defaulted on a $6.2 million bank loan.
DE Ogden Development LLC has until Aug. 25 to correct the default for the six-story building at 339 E. 2250 South, Bob Parks, senior vice president for First Community Bank, based in Salt Lake City, said Wednesday.
First Community Bank loaned DE Ogden Development $6.2 million in 2006.
DE Ogden Development defaulted because it failed to pay the loan's entire principal balance, accrued interest and other charges by Sept. 20, 2009, according to records filed with the Weber County Assessor's Office.
David Earnshaw, a principal with DE Ogden Development, could not be reached for comment Wednesday regarding the loan default.
However, Tom Christopulos, the city's deputy director of community and economic development, said Earnshaw may have bitten off more than he could chew in undertaking the Earnshaw Building, which is just north of Salomon Center in The Junction.
"He got involved in a project that was way too big," he said.
The loan default will have no effect on Deseret Book, which is housed on the building's first floor, said Parks. That floor is owned by GDP Development, which isn't connected to DE Ogden Development.
First Community Bank has found a way to complete the rest of the Earnshaw Building that has 7,100 feet of office space and parking on the second level and 28 condominiums on floors three through six, said Parks, who declined to elaborate.
"We have found a couple of solutions to take care of it," he said. "The building will be finished."
Richard McConkie, the city's director of community and economic development, said he is looking forward to completion of the Earnshaw Building by a new owner.
"It's an important building in The Junction."