KMPH Fox 26 Central San Joaquin Valley News Source in Fresno, California Entertainment, News, Sports and Weather | No Bids Received At Granite Park Auction

No Bids Received At Granite Park Auction

An auction was held Wednesday morning for portions of the Granite Park Complex, including the development's parking lot and amusement park area.

The starting bid for the development had been $10 million, with the lender, Omni Financial being owed $22 million overall.  

However, much like a similar auction of the Development's Public House Restaurant two weeks ago, no bids were received for the development.

This means those portions of Granite Park being auctioned off will now revert back to Omni Financial.

Despite the financial loss, Hano Powell, an attorney for Omni Financial, says his company isn't giving up hope,"Omni Financial made their first loan on this project 10 years ago. They believed in the concept at the time, and they continue to believe in the project."

 Powell says the company is still working to gain back their investment which may take some work on the company's part, "they're only form of repayment is from rehabilitating this project and then selling," he said.

While Powell admits the company is not in the business of being a "developer" recent events have forced them to change hats a bit. "Omni Financial can and will see this through to at least partial completion of the development," Powell said.

As for some of the deserted restaurant and club space left at Granite Park, Powell says the company will work to find the "appropriate tenants."

The property ran into trouble in recent months following claims developer Milt Barbis did not pay bills and workers' wages.

Back in May, the California Department of Insurance served four search warrants connected to the development. The investigation focused on Sportszone, Ecco Food and Entertainment, and the Kids Foundation at Granite Park. A warrant was also served on Barbis' home.

At the time officials with the California Department of Insurance said they were looking for items relevant to possible insurance fraud and other related crimes. 

KMPH and KMPH.com will continue to follow this story throughout the day.