Idaho Club lenders commence foreclosure proceedings
Hagadone News Network | November 12, 2010 8:00 PM
SANDPOINT - Lenders are moving to foreclose on developers of the upscale Idaho Club, which has suffered with the sharp decline in demand for high-end real estate in the Panhandle.
Three investors filed suit against Pend Oreille Bonner Development on Tuesday for defaulting on a $3 million loan, according to 1st District Court documents.
Sage Holdings and two other investors are calling for the Jack Nicklaus-designed golf course and lakefront property to be sold at a sheriff's auction so they can recoup their loan.
Sage Holdings, according to secretary of state records, is a Sandpoint LLC operated by Robert Myers and Lyn Roberts. Sage, the suit said, has 33-percent ownership interest in the promissory note at issue, while Dan Jacobson and Steven Lazar have 34- and 33-percent ownership interest in the note, respectively.
There are more than two dozen defendants. They include Charles Reeves, Chip Bowlby, Thomas Merschel and a contingent of other investors. Also named as defendants are a number of contractors who filed claims against the developers for unpaid bills.
The developers were put on notice last year that they were in default of the terms of the loan, the complaint said. In addition to the $2.5 million principal owed on the note, the plaintiffs seek $178,000 in late fees and penalties and $777,000 in interest, which is accruing at a rate of $1,210 a day.
The plaintiffs' counsel, Bruce Anderson, said in the complaint that the ownership interest claims lodged by other investors and contractors are subordinate to the claims of his clients.
If proceeds from the auctions fall short of making the plaintiffs whole, Anderson is asking the court apply deficiency judgments against Pend Oreille Bonner Development and judgments against Reeves, Bowlby and Merschel.
In August, Mountain West Bank commenced with foreclosure proceedings against Idaho Club developers and bevy of investors, some of whom are named as defendants in the promissory note suit.
Mountain West argues the developers defaulted on a series of loans amounting to $3.6 million and $33,000 in interest, which is accruing at a rate of $497 per day. Four undeveloped residential parcels at the club were put up as collateral, according to court documents.
Counsel for Reeves and other defendants in the Mountain West action, John Layman, declined to comment on the case. Reeves did not respond to a request for comment.
It was unclear Wednesday who is representing defendants in the latest foreclosure proceeding.