Littleton-based developer declares bankruptcy after $900K Alaska verdict

A local development firm goes bankrupt after judge orders payment of $900,000

A development firm in Colorado, Sundance Mountain Development, is facing bankruptcy and closure following a court ruling in Alaska. The judge determined that the firm abandoned a project at a naval base and now owes $900,000 to the general contractor.

Sundance Mountain Development, owned by Frank Melara, a seasoned carpenter known for developing office parks and buildings for defense contractors, was contracted by Ahtna Design-Build to renovate a building at Naval Base Ventura County in California in 2020. The contract was valued at $1.3 million.

However, Sundance failed to secure a bond for the project and halted work after citing increased expenses that would make it unfeasible to complete the project within the contract amount. This led to a breach of contract with Ahtna, resulting in a court order for Sundance to pay $916,307 to the general contractor.

Subsequently, Sundance filed for Chapter 7 bankruptcy with debts amounting to $1.1 million, primarily owed to Ahtna. The firm also has federal back taxes totaling $68,000. Despite reporting revenue of $155,000 in 2024, its financial situation deteriorated with only $14,300 in revenue for 2025.

The bankruptcy filing preempted a court hearing where Ahtna sought to garnish Melara’s bank accounts. Melara declined to comment on the case, citing advice from his lawyer. The bankruptcy proceedings are being handled by attorney Keri Riley from Kutner Brinen Dickey Riley in Denver.