Bank of America sues development builder

Bank of America has sued Robert V. Jones Corp., demanding repayment of $7.5 million in loans used to build a west Las Vegas housing development.

BofA is asking a state court judge to place the Sanctuary, a 48-unit house and condominium development at Spring Mountain and Cimarron roads, in receivership until it can be sold in a foreclosure auction. BofA claims all development and sales activity on the property has stopped, endangering its value as collateral to BofA.

The Sanctuary, started in 1997, was to eventually have 110 houses and 240 condominiums.

Starting in January 1997, BofA extended three loans to the Jones company totaling $17.4 million. BofA said the loans were to be repaid by early 1999, and as of January, the Jones company was in default on the loans.

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