Developer Cota files bankruptcy

By Jon Johnson
Assistant Editor
Published on Wednesday, November 5, 2008 11:16 AM MST

Eloy Cota, president of E&C Homes LLC, filed for chapter 11 bankruptcy in the United States Bankruptcy Court in Tucson on Sept. 30.

Cota is developing several projects in the Gila Valley, including Safford Cota Ranch and property near Eastern Arizona College that is in the beginning stages of development.

According to the United States Federal Courts Web site, a chapter 11 filing is usually an attempt to stay in business while a bankruptcy court supervises the reorganization of the company’s contractual and debt obligations.

Cota’s attorney, John Battaile of the law firm Altfeld Battaile & Goldman PC, said a slow real estate market and failing economy precipitated the filing.

“A couple of years ago, Cota was making money and had lots of projects,” Battaile said. “Now the homes are not selling, and he’s having trouble paying his creditors.”

Battaile said it was too early to know what would become of the developments, but he would have a clearer picture in less than a month.

“We have to address a lot of issues with the properties,” Battaile said. “If there’s people in houses (in subdivisions) that aren’t finished; that has to be put on the front burner.”

A meeting of Cota’s creditors is scheduled for the bankruptcy court in Tucson on Nov. 20 at 1 p.m.

Safford Planning and Community Director Pete Stasiak said Cota had improved the land at Safford Cota Ranch to the point where the value of an acre has doubled from when he first began to develop it.

Cota worked closely with EAC on projects for the college and was developing land west of the college’s South Campus with plans to build apartments and town homes to assist the college in meeting current and future student housing demands. He also donated $1 million to the school – the largest donation in the college’s 119-year history.

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Comments

8 comment(s)

Disgusted wrote on Nov 10, 2008 10:44 PM:

" Cota the con-man. All you have to do is look at AZ Registar of Contractors under Cota's Construction license. That will tell you what kind of contractor he is. The college made a bunch of money and left Thatcher with an eye sore. "

PimaTwo wrote on Nov 8, 2008 8:53 PM:

" I don't beleive the Gila Valley can support even $150k homes. The income is just not high enough for this price. 3 times your annual salary is a good start. Anything higher is not doable.
If the average income is $25K then the homes average needs to be $75K. Even if both parents work at $25K it will be to hard for everyone to have a decent life in the home.
Oh sure some will be higher and look like they have more but they really won't. When they try and sell you'll see. "

overbuilding. wrote on Nov 8, 2008 9:31 AM:

" And still their are 1000's of new homes on the drawing board in the area. 1700 planned for south of artesia. New homes going in north of the high school. Does any of it makes sense. Oh well capitalism is, after all profit and greed motivated and then there is always the tax payers who will bail them out inder the guise of "GOVERNMENT" stimulous.

Does it make any sense? if you are on the recieving end it apperently does! "

jodis wrote on Nov 7, 2008 12:16 PM:

" The home prices in the Safford area are ridiculous. We will start seeing foreclosures, just as the cities are seeing them. A new cookie cutter home in Safford should be max'd out at $150k and that's with decent upgrades and possibly a pool and landscaping. The valley has become greedy. So sad. "

PimaTwo wrote on Nov 7, 2008 12:11 PM:

" It's High Apple Pie in the Sky Hope folks. That's the attitude that's causes them to loose money.
Does everyone including EAC know where the creditors money that was lost comes from. You and me that's where. Not the government. Savings accounts and IRA's. This lost money does not get recovered in Chapter 11 only Chpter 13 via liquidation.
So more fun is likely still ahead for all involved. I hope the Government bails them out since I doubt anyone will step forward with cash to help them at least not right now. "

T.J. wrote on Nov 6, 2008 6:15 PM:

" How can someone charge these crazy high prices and still go broke? "

Gone Fishing wrote on Nov 6, 2008 3:43 PM:

" Guess Terry Hinton will have to remain with the Town of Thatcher for a few more years. No early retirement with his pal Cota in this economy. "

Deserving wrote on Nov 5, 2008 1:01 PM:

" Cota has been providing good quality homes to buyers but his lack of business ethics makes him deserving of bankruptcy. "

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