Fayetteville, W.Va. - An official with a land company that hoped to build houses along the New River Gorge said Tuesday he must wait until he gets approval from his bank before any new housing projects can move forward.

While the company waits for financing to improve, it will not refund any money to people who bought lots in the Roaring River development, said Mike Flaskey, chief executive officer of Land Resource Cos.

Flaskey said in January that he could turn to eight banks for financing to build projects. On Tuesday, he said the only bank still available to him will only lend money for projects that already have infrastructure in place - which the Gorge project doesn't have.

"Our goal is to fulfill our promise to our customers and to build the community we promised, but without our lenders' support, we have no means to accomplish that," he said.

He said he is meeting with bankers and submitting a new business plan for their approval.

Land Resource Cos. has closed the Roaring River sales and marketing office in Fayetteville. Flaskey also said he had to close six sales offices for projects in different places and lay off 150 employees.

Originally, the company planned to build more than 2,000 houses on 4,300 acres in a three-phase project in the Gorge. They were still working on the first phase, and Flaskey said they had sold 100 to 150 lots.

Fayette County's zoning officer got a call from the company last week, telling him that the project is on hold.

"They were open and honest with me. I told them I am on the front lines here, and people will be turning to me with questions," said Tim Richardson.

"They told me they are not going out of business, but they are postponing their plans because of the economic downswing. They are not leaving the area. They are not selling out," he said.

Officials with Land Resource first asked for a zoning change for Roaring River, the largest housing development ever proposed for the county, three years ago. Since then, the company's headquarters has moved from Atlanta to Orlando, Fla.

Fayetteville, W.Va. - An official with a land company that hoped to build houses along the New River Gorge said Tuesday he must wait until he gets approval from his bank before any new housing projects can move forward.

While the company waits for financing to improve, it will not refund any money to people who bought lots in the Roaring River development, said Mike Flaskey, chief executive officer of Land Resource Cos.

Flaskey said in January that he could turn to eight banks for financing to build projects. On Tuesday, he said the only bank still available to him will only lend money for projects that already have infrastructure in place - which the Gorge project doesn't have.

"Our goal is to fulfill our promise to our customers and to build the community we promised, but without our lenders' support, we have no means to accomplish that," he said.

He said he is meeting with bankers and submitting a new business plan for their approval.

Land Resource Cos. has closed the Roaring River sales and marketing office in Fayetteville. Flaskey also said he had to close six sales offices for projects in different places and lay off 150 employees.

Originally, the company planned to build more than 2,000 houses on 4,300 acres in a three-phase project in the Gorge. They were still working on the first phase, and Flaskey said they had sold 100 to 150 lots.

Fayette County's zoning officer got a call from the company last week, telling him that the project is on hold.

"They were open and honest with me. I told them I am on the front lines here, and people will be turning to me with questions," said Tim Richardson.

"They told me they are not going out of business, but they are postponing their plans because of the economic downswing. They are not leaving the area. They are not selling out," he said.

Officials with Land Resource first asked for a zoning change for Roaring River, the largest housing development ever proposed for the county, three years ago. Since then, the company's headquarters has moved from Atlanta to Orlando, Fla.

Richardson said Land Resource made some "across the board cutbacks" on the Roaring River project and other projects they had started because of the downturn in the housing market.

"They were right on the verge of starting up in Phase 1," Richardson said. "They are coming back when the economy picks up. They need to weather the storm of what's happening nationally for now."

Nathan Queen, a West Virginia University graduate who now lives in Charlotte, N.C., bought a lot in Roaring River, hoping to build a second home there.

"We thought it would be a nice place to go when we come back [to West Virginia] for games," Queen said. He first discovered the project was on hold when he read a story in the Sunday Gazette-Mail.

"We have heard absolutely nothing from the company," he said. They have tried unsuccessfully to get information from the company about other matters, he said.

"I was a little alarmed earlier this year when they made some subtle changes on the Web site about the amenities they offered," he said.

Although the Roaring River project was the largest, several other developers also planned to build upscale housing projects near the Gorge. People worried the houses would impair views in the Gorge and cut into areas of sensitive plant and animal life.

Flaskey said Tuesday he was busy returning calls to the media and would contact property owners as soon as possible.

In public meetings, company officials always reassured anyone who raised a concern and promised they would build the houses in an environmentally sensitive manner.

Reach Susan Williams at susanwilli...@wvgazette.com

 or 348-5112.