Unfinished DoubleTree Lake Estates West under microscope

2012-11-18T19:04:00Z 2012-12-09T21:14:45Z Unfinished DoubleTree Lake Estates West under microscopeLu Ann Franklin Times Correspondent nwitimes.com
November 18, 2012 7:04 pm  • 

WINFIELD | The Town Council has authorized Clerk-Treasurer Richard Anderson to aggressively pursue additional information and documentation regarding performance bonds and maintenance bonds covering DoubleTree Lake Estates West phases seven and eight.

Additional funds are also required when the bonds are renewed in December and March, according to records submitted to the council by Anderson.

When developers create residential subdivisions in municipalities, they put up performance bonds as a promise that the development will be completed and maintenance bonds as a guarantee that all the work that’s been done is being maintained, Anderson said.

On May 10, 2004, DoubleTree Lake Estates’ original developer David Lasco sold his interest in the two large DoubleTree subdivisions along Randolph Street to a private group of investors including Randy Minas, Ken Matney and Anthony Meyers doing business as DoubleTree Lake Estates LLC.

Fifth Third Bank holds letters of credit issued to DoubleTree Lake Estates LLC, backing the performance and maintenance bonds for those last two sections, Anderson said.

Because of financial problems this group has experienced, those two last phases of DoubleTree Lake Estates West haven’t been completed, and the bonds must be renewed.

The last time the bonds for phase seven were renewed was on Aug. 8, 2007, Anderson said. Phase eight's bonds were renewed on Aug. 28, 2008.

However, shortly after those bonds were renewed, DoubleTree Lake Estates LLC was put into receivership, Anderson said.

A receivership occurs when someone is appointed to take control of a failed business, with the goal of recouping as many losses as possible.

According to published reports in The Times, federal Magistrate Paul Cherry on March 1, 2012, appointed an Illinois company as receiver for certain Doubletree Lake Estates properties.

Cherry ordered Sharp Property Solutions LLC to take possession and control of the properties, collect any rents and other income, and perform other functions aimed at preventing waste and safeguarding the property's value.

Sharp was required to promptly obtain a $1 million bond to cover any negligence or breach of its duties under the receivership.

After a settlement agreement among Minas, Meyer and Matney stalled, Fifth Third Bank in July 2011, filed a separate foreclosure action against them, Doubletree Lake Estates and Doubletree Golf.

The bank is seeking damages in excess of $13 million for the partnership's failure to pay amounts due on certain properties within Doubletree.

In December 2011, Minas, who gave a Culver, Ind., address, filed a petition for Chapter 7 bankruptcy protection.

Anderson said he has a verbal agreement with Fifth Third Bank to renew the letters of credit. However, if the financing isn’t provided, the Town Council approved pursuing further legal action.

 

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