A federal bankruptcy court judge dismissed the Chapter 11 bankruptcy case brought by the developer of a Port Norfolk waterfront property on Tuesday afternoon, ruling that the owners had run out of time to restructure their financing plans to get the stalled-out project back on track.

The ruling has important implications for Neponset Wharf, an ambitious, $90 million redevelopment project that would bring 120 housing units, open space, a marina, and other amenities to the Dorchester waterfront adjacent to Venezia restaurant. First proposed in 2017, city officials approved plans for the 3.6 acre, three-building complex in January 2022, but it has been mired in regulatory and financial hurdles ever since.

The four parcels in question on Ericsson Street are now slated to be auctioned off on October 24, according to Paul Saperstein Co., a public auctioneer. A previously scheduled auction last May was averted just hours before when the lead developer, CPC Ericsson, filed for Chapter 11 bankruptcy.

On Tuesday, Judge Janet Bostwick told the parties to the bankruptcy case that, essentially, time had run out on efforts to restructure a financing plan that might salvage the project through her court.

“This case has been in four months, and they still can’t pay real estate taxes and have no income,” said Judge Bostwick during a hearing at the McCormack Courthouse in Boston. “I understand the debtors have optimism but that has to balance out with the obligations, and it can’t just be, ‘Let me try again.’"

She added: “There really is a great deal of uncertainty of what it can do and when it can get developed. For all these reasons, the case is dismissed.”

Justin Kesselman, a federal court trustee, said CPC Ericsson was not able to pay real estate taxes that due to the City of Boston – a basic element of restructuring.

“The operating report showed they had no cash in June and $100 was deposited in July,” Kesselman said. “That showed what we expected. They have no ability to pay the debts of this Chapter 11 process.”

He said he was no longer looking to convert the case to a Chapter 7 liquidation, but rather simply to dismiss the case and let the lenders work it out privately.

CPC Ericsson is controlled by City Point Capital’s Ryan Sillery, who has been attempting to construct the project for years with many ups and downs.

The judge on Tuesday also noted the complex corporate structure includes other partners, including Rise Together— a Port Norfolk based company— and a lien holder on the property.

Gary Cruickshank, an attorney representing CPC Ericsson, said absent the bankruptcy process, they will have to try to work privately with the lender, Unitas Capital of New Jersey, to salvage the project.

“We’re going to have to figure out a way to keep the project going,” Cruickshank said after the dismissal Tuesday.

“A foreclosure sale doesn’t do anyone any good – even the lender (Unitas),” he added.

Unitas attorney Jay Johnson said they are owed just over $10 million by CPC Ericsson, and they supported the dismissal ruling on Tuesday.

Cruickshank said they hoped to work out new terms with the lender, and before the dismissal he pleaded with the court for “two or three more weeks” as they were close to getting terms with a new lender who could support the project and deliver a detailed loan schedule.

Attorney Johnson told the court during the hearing they had a new appraisal done on the property, and it came back at a value of $12.5 million as is. The appraiser refused to evaluate the boat yard due to lack of permits, so that was not included in the appraisal. Johnson estimated with the boat yard they could probably get a maximum of $16 million.

The foreclosure sale auction by Saperstein Co. was listed on the company website for Oct. 24 at 2 p.m. and included the parcels 6R, 8R, 18R, and 20R Ericsson St.

Above, an aerial view of the site in question in Port Norfolk. File photo