Downtown Project Stalls After Contractor Files Bankruptcy

LIVERMORE, CA — The Legacy at Livermore mixed-use project in downtown Livermore hit a snafu last week when its contractor filed for chapter 11 bankruptcy protection.

Houston-based construction startup Katerra said that as a result, it would not be able to continue working on many of its United States projects. Foster City-based developer Legacy Partners, which has not responded to a request for comment, said days later that projects in Livermore and Hayward were affected by the bankruptcy filing.

Plans for Legacy at Livermore call for a 222-unit, 410,000-square-foot project spanning two buildings at 1934 First St., 49 S. L St. and and 57 S. L St. Plans include a garage with some 390 parking spaces, another lot with 50 parking spaces, an open space area and 14,000 square feet of retail space.

The Legacy at Livermore project was bonded, which means the city is protected in the event that something goes awry and the project cannot be completed as described. Legacy Partners said in a Facebook post that it has reached out to the bonding company "so that each project can continue with as little interruption as possible."

Adam Van de Water, Livermore's director of innovation and economic development, said Legacy Partners remains totally committed to the project and will evaluate its options in the days to come. The expectation, however, is that Legacy Partners will settle its accounts with Katerra and hire a new contractor.

Van de Water said he believes the delay should last weeks, not months, and the project will hopefully remain on track to finish in 2022. The project is about 60 percent complete, he estimated.

Despite some social media rumors to the contrary, Van de Water clarified that Legacy Projects is not filing for bankruptcy.

Read more about Katerra's chapter 11 filing from the Wall Street Journal.

Correction: An earlier version of this report misstated the planned size of the Legacy at Livermore project.