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Eau Claire-based developer Goldridge Group sued(The Leader-Telegram (Eau Claire, Wis.) Via Acquire Media NewsEdge) Oct. 11--MandI Bank has filed a lawsuit seeking to foreclose on property owned by Eau Claire-based Goldridge Group, including the EastRidge Center and Waterford project. The civil suit -- filed by Milwaukee-based MandI recently in Eau Claire County Court -- also seeks to collect money judgments from the business as well as its related companies and members of their ownership. Court documents claim a total outstanding principal balance of $46.7 million as of Aug. 25. "This legal action comes on the heels of six months of negotiations between MandI and Goldridge designed to head off this litigation," Rick Bowe, Goldridge president, said in a press release. "Back in April, MandI officially notified Goldridge that it was declaring its loans to Goldridge in default, despite the fact that Goldridge had not missed a single payment to MandI. Indeed, today, Goldridge has been current on its payments to MandI through the date of this filing." According to court documents, the Waterford mixed-use development in Eau Claire and Northernaire resort property near Three Lakes have the largest outstanding principal balances -- more than $15 million and $14 million, respectively. Goldridge Group in June 2004 unveiled its plans for Waterford, a development on former Eau Claire Golf and Country Club property along Business U.S. 53 and the Eau Claire River. Three months later, the City Council -- despite objections from some neighbors -- approved Goldridge's request to rezone the property and the project's general development plan. After some alterations, construction began in 2006. The site includes Alliance Bank, the Metropolitan South Building, featuring townhomes and retail space, the Waterford Office Complex and a parking ramp. "It's a phenomenal addition to the community," said Bob McCoy, president of the Eau Claire Area Chamber of Commerce. "It's a big-city type look that we haven't had. It's a nicely constructed property. I think it's competitively priced. I think it fits well where it's at. Unfortunately, it just hasn't filled up as quickly as people hoped. "I would hope that there would be an opportunity for them to work something out. There are some significant dollars there." Others echoed that sentiment. "It's a beautiful development," Eau Claire City Council member Dave Duax said. "I'm sad to hear of this happening. We know the economy isn't doing well. This isn't a good omen for high-end development in Eau Claire. It was an innovative step they took with Waterford. ... It moved Eau Claire forward in many ways. "I just hope that this will be worked out. It's very disappointing." According to Bowe, MandI is contending that the value of the property mortgaged to secure loans has dropped so low that Goldridge has violated its contracts with the bank to maintain a certain level above the amount owed. "While Goldridge disputes (that) the value of its properties has fallen to the levels alleged by MandI Bank," Bowe said, "it cannot be denied that the recent financial crisis in the real estate and credit markets has adversely affected the value of Goldridge's real estate holdings." Defendants in the complaint include Steven and Lisa Stamm of Mondovi; Gerard and Rosalie Koehn, Goldridge Group, Goldridge Construction, Shoppes at Woodridge, Waterford of Eau Claire, Goldridge on Club View Lane and Northernaire on Deer Lake, all of Eau Claire. Properties involved include three shopping centers: EastRidge, 2221 Highland Ave.; WestRidge, 2615 N. Clairemont Ave.; and SouthRidge, 2500 S. Main St., Rice Lake. Also involved in the complaint is the WestRidge Plaza, an office building at 2403 Folsom St.; Club View, which owns vacant lots for residential development; and Woodridge, formerly known as Northway Mall of Marshfield. Goldridge will continue talks with MandI and about 35 other banks and credit unions with whom the developer does business to explore possible options, Bowe said. He also anticipates a return to business as usual for Goldridge, which has 45 employees in Eau Claire and 93 more outside the area. "We want to assure our other lenders and business associates that Goldridge will continue to manage its properties and other businesses responsibly and in the best interest of all our constituents," Bowe said. "We expect to weather this storm and these very bad market conditions and come out of this situation stronger for the experience." Marlaire can be reached at 833-9215 or [email protected]. O'Brien can be reached at 830-5838 or [email protected]. To see more of The Leader-Telegram or to subscribe to the newspaper, go to http://www.leadertelegram.com. Copyright (c) 2008, The Leader-Telegram, Eau Claire, Wis. Distributed by McClatchy-Tribune Information Services. For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA. |