menu bar

navigate through articles

This Article: New York Times, September 11, 1988 at Section 10, pg. 21

Valley of Lakes RICO Class Action against PNCBANK, et al.
ripped edge: news articles

NATIONAL NOTEBOOK: Hazleton, Pa.; Custom Homes In Resort Setting


Development has resumed on a large residential-resort community seven miles west of this northeastern Pennsylvania town, eight years after the high interest rates of the late 70's forced its former owners into foreclosure.

The six square miles of wooded, mountainous property, known as the Valley of Lakes, was bought in 1986 by CBG Ltd., whose major partners are Frank M. Cedrone of Marlton, N.J., and Silec, an Italian concern.

Mr. Cedrone, the managing partner, said earlier efforts to develop a residential resort ended in 1980, when creditors foreclosed on High Vista Inc. of New York City. CBG acquired the site after five years of litigation.

Plans call for Valley of Lakes to have 6,000 dwellings marketed both as primary and second homes. Half of the units will be detached houses and half multiple dwellings, such as town houses or quadriplexes.

The community already has lakes, ski slopes and other recreational amenities under the name Eagle Rock Resorts. CBG plans to add an 18-hole championship golf course designed and managed by Arnold Palmer and his organizations, a two-mile ski slope and a $52 million, 250-room hotel equipped for conventions.

CBG began selling lots on newly improved segments of the property in July 1987. By the middle of last month, it had sold about 120 lots for detached houses, and had extended roads and sewer and water service to about 700 other lots. Lots are priced from $17,600 to more than $100,000, depending on location and size, with the average price of a lot from $35,000 to $40,000.

Because of stringent deed restrictions and building standards imposed by CBG, homes will cost a minimum of about $100,000; the lowest price for a lot and house will be about $120,000. The developers have approved 10 custom builders who can be used by lot owners, and rejected 35 others. An unusual requirement is that all homes must have personal computers, which will be hooked into a central security system.

Last month, CBG started site preparations on 30 town houses, the first phase of a 260-unit town-house development that will be finished in 1989. Town houses, which will have two to three bedrooms and 1,300 to 1,600 square feet of space, will range in price from $90,000 to $110,000.

Principal financing for the project is from First Eastern Bank in Wilkes-Barre, Pa., with additional loans from the Lucerne County Business Development Loan Program and other sources.

Valley of Lakes RICO Class Action against PNCBANK, et al.

Previous Article | Next Article

Home | Court Decisions | News Articles | RICO Complaint | Exhibits