Developer pays naval station bill

Officials at LNR Property Corp. say their payment illustrates the firm’s commitment to the massive redevelopment project, which has faced numerous delays. The developer’s plan is to transform the shuttered military base into a new community called SouthField. But so far, nothing has been built.

“It may sound strange, but we’re actually happy about this tax bill,’’ said Kevin R. Chase, vice president of LNR’s Northeastern region. “It’s a big milestone for Tri-Town and it’s a big milestone for the project. And in terms of LNR’s investment in the project, it shows we’re committed and here to stay.’’

The government entity at the base, called the South Shore Tri-Town Development Corp., recently received state approval for the tax rate it set for the property. It reported that it received a $1,130,593 wire transfer from LNR’s Miami Beach headquarters last Friday. The payment covers LNR’s property taxes from July 2008 through June 2009 for 324 acres of the site it owns, land that is estimated to be worth $49,459,000, said Kevin R. Donovan, chief executive of South Shore Tri-Town Development Corp.

The bulk of the payment - $994,153 - covers LNR’s property taxes and the rest - $136,440 - is an operations payment that LNR previously agreed to pay South Shore Tri-Town, said Donovan.

As the master developer, LNR plans to subdivide the property and sell lots to homebuilders and commercial developers, who will then construct some 2,855 homes, as well as offices, restaurants, retail shops, a 14-screen movie theater, an 18-hole golf course, turf athletic fields, an Olympic-size skating rink, and a movie studio complex.

But the past few months have been difficult for the real estate firm. In November, Standard & Poor’s lowered LNR’s bond rating from B- to CCC. Moody’s Investors Service also downgraded LNR’s rating from B3 to Ca.

Then, on Jan. 14, Bloomberg reported that LNR had hired advisers to restructure $1 billion in debt and prepare for a possible bankruptcy filing. Officials at LNR and its parent company, Cerberus Capital Management LP, declined to comment on Bloomberg’s report.

“While LNR has operations throughout the US and Europe, the South Weymouth project specifically is a strategic investment for LNR, and represents a major commitment of our stakeholders,’’ said Thomas J. Hughes, LNR Property Corporation’s chairman and CEO, in a written statement. “LNR has funded $80m to date since 2002, and we stand prepared to continue to invest in the project. We are working with diligence to ensure that South Weymouth’s potential value is maximized for all stakeholders, through its continued build-out.’’

Local officials and business leaders remain optimistic about LNR and the SouthField project.

“The local LNR team, when questioned, indicates that the possibility of bankruptcy will not directly affect the SouthField project,’’ Donovan said in a recent e-mail.

Weymouth Mayor Susan M. Kay said the fact that LNR paid its fiscal 2009 tax bill in full and on time is positive.

“Of course I’m worried . . . but this is positive,’’ said Kay, who described herself as concerned but cautiously optimistic. “If they didn’t have an interest in the SouthField project, why would they pay this bill?’’

Peter Forman, president and chief executive of the South Shore Chamber of Commerce, said it’s not surprising the project has hit some roadblocks and delays, given the economy and the slowdown in the real estate market.

“Obviously, like all of the large developments around New England, and probably the whole country, they have been delayed because of the housing fall in the past two years. But we’re viewing this only as a delay. We think the [SouthField] plan is not only sound, it is going to help fundamentally change the South Shore.’’

Forman noted that construction of a key roadway through the base - the East/West Parkway - is slated to begin soon. Once that is built, he said, home construction and commercial development are expected to follow.

“I’m pleased with what’s happened over the last few months. We’ve had a lot of help with [Governor Deval Patrick’s] administration in moving the road project forward,’’ said Forman. “There’s been a lot of progress. I think things are actually beginning to look more hopeful than they did nine months ago.’’

The length of time it will take to finish SouthField - buildout is projected to take 12 years - will bring economic growth and activity to the region, he said.

“Everyone is waiting for SouthField because it’s the largest development project on the South Shore,’’ said Forman. “Nobody is particularly surprised that it’s had a slower startup; after all, we’ve had a national crisis going on. . . . It’s going to be the spark that generates a lot of activity. Nobody’s forgotten about it.’’

Emily Sweeney can be reached at esweeney@globe.com. Follow her on Twitter at www.twitter.com/emilysweeney.