Creditor takes control
Vin Diesel  |  by www.thestate.com. All rights reserved. 4.04 | 3:14

Plans for condominiums and a 138-room Crowne Plaza hotel, advanced by the former owner, are among the unknowns.

The creditor of Midtown at Forest Acres gained control of the struggling mall Monday following its owner s inability to pay back more than $39 million in loans.
The 33-acre property formerly known as Richland Mall was auctioned as a result of foreclosure.


Richland Joint Venture Group expects to have a deed for the property within 20 days, said John Moore of Nelson Mullins law firm, a lawyer for the company.
Moore said the Sarasota, Fla.-based company has no immediate plans for the mall, such as a sale or redevelopment.

It expects to make a decision in the coming months, he said.
Purchased in 2005 by Midtown Development Group, the mall has lost major tenants this year, such as Express and Parisian department store.
The once-thriving shopping center now is down to about 26 retail shops and eateries.

Other area malls have at least 100 shops and restaurants.
Midtown Development also failed to begin a planned makeover, including condos above a parking garage and outdoor shops and restaurants.
Forest Acres Administrator Mark Williams said, to his knowledge, there have been no discussions with the creditor about redevelopment plans.

He has received calls, though, from developers as far away as New York and California about bringing previous plans into reality.
"That tells me that there probably still is interest in doing what was originally conceived," Williams said. "It's just a question of who's going to end up doing it.

"
In the past year, Forest Acres city leaders were troubled over few reports from developers and delayed construction. After approving the zoning plan, Williams said the city had little, if any, leverage to compel the developers to release any more information.
"But once burned twice shy," Williams said.

"The next one that comes along will probably get more intense scrutiny.
Asked whether the city would broach other developers about working with the creditors, Williams said he wouldn't rule out more city input, especially "if the mall goes dark."
But in the final analysis, he said, its a private-sector solution.

"
About eight people contacted Moore about the property prior to Monday s auction, he said. On auction day, the highest competing bid was $11 million, far short of the $39.2 million Richland Joint Venture Group was owed.


Besides the foreclosure suit from its creditor, Midtown Development Group was sued by Illinois-based Tracy Cross and Associates in February for failing to pay an $11,000 balance for a real estate market survey.
Midtown Development Group declined to comment Monday.
The mall s sale does not include the T.

G.I. Friday s restaurant, the Bank of America branch or the 1,400-employee Verizon Wireless call center.


The fate of a 138-room Crowne Plaza hotel planned for the former Dillard s site is at the discretion of the mall s new owner.
No contract has been signed for the building, but developer Rick Patel said he has forwarded hotel plans to the chain s corporate office for approval.
Staff writer Joy Woodson contributed to this report.

Reach Ryan at (803) 771-8595.

Read more on by www.thestate.com. All rights reserved.
Keywords: Midtown Development, Forest Acres, Development Group, Midtown Development Group, Crowne Plaza, Venture Group, Joint Venture Group, Richland Joint Venture, Joint Venture, Richland Joint
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