The long-debated “Estates of Lawsonia” on the east end of the Green Lake Conference Center is facing foreclosure action.
First State Bank of New London, Wis., has filed foreclosure action against Lindenwood Development LLC and American Baptist Assembly Inc., among other parties.
The bank is said to be owed more than $3 million — money spent on building the high-end housing subdivision with nearly 100 lots.
But despite the pending court activity, Lindenwood and the chairman of the Green Lake Conference Center’s board of directors are optimistic the project can move forward, and avoid being foreclosed upon.
The suit is filed in Winnebago County — home to Lindenwood partner Ted Dominowski.
Last week, the court rejected a defense motion to change the venue to Green Lake County. Another hearing was scheduled for June 30.
Court proceedings have been ongoing since the bank filed for foreclosure in November, but the issue was discussed publicly last week at the monthly meeting of the Brooklyn Town Board.
Dominowski isn’t surprised about the foreclosure filing, with the bank under federal scrutiny with regard to lending.
“Basically they had no choice,” Dominowski said. “They filed a foreclosure action because they are under such heavy control by the FDIC. They had to come up with an action plan for every loan they had out there ... And the simplest action plan for a bank is, ‘We’re going to foreclose and [threaten to] take back the property.’”
He dismissed the notion that Lindenwood is bankrupt.
“That would be untrue almost to the point of slanderous,” Dominowski said. “A bankruptcy and a foreclosure are two completely different things.”
Read the full article in the April 21 Ripon Commonwealth.