MORGANTOWN — On Monday – the same day as a scheduled hearing on an emergency motion to place WestRidge Inc., WestRidge Land Holdings LLC and WestRidge Commons LLC in receivership – all three filed for Chapter 11 bankruptcy.
WestRidge is the developer behind one of, if not the, most successful tax increment finance (TIF) districts in West Virginia, including the University Town Centre, WestRidge Business & Retail Park and The Gateway.
The entities, controlled by Ryan Lynch and the Lynch family, each filed separately in the Northern District of West Virginia.
West Ridge Inc. claimed assets of $10 million to $50 million and liabilities of $50 million to $100 million. Creditors include Falcon Services ($1,928,640), Anderson Excavating ($1,917,478), Morgantown Utility Board ($706,548), Buchanan Ingersoll ($225,000) and others.
West Ridge Land Holdings, LLC claimed both assets and liabilities of $10 million to $50 million and listed creditors including Anderson Excavating ($1,940,538), Buchanan Ingersoll ($241,057) and Terradon Inc. ($147,589).
Similarly, WestRidge Commons LLC claimed both assets and liabilities ranging from $10 million to $50 million and listed creditors Falcon Services ($1,611,779) and Anderson Excavating ($438,150).
Members of the Monongalia County Commission, who meet regularly with Lynch – most recently during an Aug. 6 work session according to posted agendas – said they were given no advanced notice and learned about the filing Tuesday.
While the commission issued a statement Wednesday indicating the body was gathering details and didn’t wish to respond until it had a chance to do its due diligence, the commissioners were adamant the filing does not reflect the health of the district.
“The district is strong and continues to be strong,” Commissioner Sean Sikora said.
“The [sales tax increment] revenues are sufficient to cover the debt service of the bonds, which is the number one indicator to us of the strength of the TIF,” Commission President Jeff Arnett added.
As noted, the bankruptcy filing came the same day as a scheduled hearing before Northern District Chief Judge Thomas Kleeh requested by WestRidge lenders. The hearing was the result of an emergency motion for appointment of a receiver, but was ultimately suspended in light of the bankruptcy notice.
In a court filing from July 28, legal counsel for Piper Canyon Partners, LLC and RMWC WA Credit, LLC argue the need for a receiver – a court-appointed custodial third party who takes managerial control of a company’s assets and operations – “is real and urgent.”
The court document describes a $40 million loan from Piper Canyon to WestRidge Land Holdings in July 2022 and a $14.2 million loan from RMWC WA Credit to WestRidge Commons in March 2024 and says both promissory notes have matured but outstanding balances of $38,277,600.27 and $16,694,604 remain.
The lenders say they don’t believe the defendants – WestRidge Land Holdings, WestRidge Commons, WestRidge Inc. and Ryan Lynch – have the capital to meet the obligations of the loan and protect the loan collateral.
“The Lenders have repeatedly offered forbearance for defaults and attempted to work with the Defendants to get the WestRidge Development back on track. Defendants have repeatedly disregarded agreed-upon obligations, have repeatedly stonewalled the Lenders from receiving critical information about the loan collateral and the overall WestRidge Development project, and have offered no viable plan for protecting the loan collateral or moving the projects forward.”
WestRidge provided the following statement.
“Three entities connected to the WestRidge development have recently filed for voluntary Chapter 11 bankruptcy protection. While we cannot provide further details at this time due to ongoing legal considerations, we want to make it clear that this decision was not taken lightly. It was a step taken to safeguard the long-term strength of the project and protect the interests of our community, partners, and stakeholders
We will guide these affected entities through the Chapter 11 process as efficiently and responsibly as possible – to provide the stability and flexibility necessary to ensure the continued progress of development in and around WestRidge. Most importantly, our commitment to the ongoing public infrastructure projects we are partners in has not changed. The projects currently underway will continue without interruption, and we view them as the critical foundation for the next phase of development in western Mon County. These projects represent not only an investment in today’s needs but also in the opportunities and vitality of tomorrow for this area of the county, as well as our greater region.
We will release additional information as we are able to. We would like to express how deeply grateful we are for the trust, encouragement, and support we continue to receive from our public and private partners. That support inspires us to move forward with confidence and determination. We remain steadfast in building a strong, sustainable, and thriving center of economic development and growth for our region.”
