Saguaro Ranch, a luxury development in Marana, filed today for Chapter 11 bankruptcy protection.
The development, best known for the tunnel blasted through a mountain that serves as its entrance, had become enmeshed in financial problems as the housing market crashed. Few homes were built in Saguaro Ranch, and some of the properties had been foreclosed.
"Due to inflated infrastructure costs, at the peak of the housing boom, and the overall decline in the housing market, this reorganization is necessary," the company said in a press release.
The bankruptcy filing, the statement said, "will give Saguaro Ranch the the opportunity to reevaulate the project plan, adjust pricing of lots, complete the necessary infrastructure improvements and get everyone who is owed money paid."
Day to day operations at Saguaro Ranch will continue, and McClintock's restaurant in the development will remain open, attorney Eric Slocum Sparks said in the release.