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Bon Secour Village Auction

Here is the news story from the October 01, 2008 Mobile Register:

Bon Secour Village development property ordered auctioned to pay debt
Posted by Ryan Dezember, Staff Reporter October 01, 2008 6:44 AM

A federal judge has ordered that the Bon Secour Village property in Gulf Shores be auctioned to clear the more than $20 million that the failed project's developers owe Wachovia Bank.

In an order signed last week in Mobile's federal court, U.S. District Judge Kristi DuBose outlines the process by which the lender, through a court-appointed receiver, can sell about 880 acres.

Billed as a town within a town along the northern shore of the Intracoastal Waterway, the $500 million development has been mired in financial and legal problems for the last year.

Besides Wachovia's foreclosure suit, the developers face lawsuits in state court from Regions Bank, which says Bon Secour Village LLC owes it nearly $1.8 million; a Louisiana couple that claims they were misled by the developers and overpaid for a lot; and unpaid Realtors, builders and landscapers.

One the development's five partners has sued the others, alleging some of them have mismanaged the project's funds. And this summer three of the partners ? Michael Knight and Cullman brothers Eddie and Josh Canaday filed for Chapter 11 bankruptcy protection in northern Alabama's federal court.

Wachovia continues to be the single largest of Bon Secour Village's creditors, though. Last year the developers defaulted on $20.36 million they borrowed from the North Carolina-based lender.

In a Sept. 19 court filing, Wachovia, which hasn't been paid since June 2007, said the developers now owe $22,120,662.91 in principal, interest and fees. The bank said interest continues to pile up at a rate of $2,673.31 a day.

The lender's Birmingham attorneys are also asking for $164,800 in fees and expenses they incurred, one of those lawyers, Jason Woodard, wrote in an affidavit. Woodard did not respond to requests for comment on the case.

Receiver Jeffrey Granger, of the turnaround firm Focus Management, wrote in a Sept. 11 court filing that he had "made a business judgment that it is in the best interest of Bon Secour and its credit ors" to offer the property at auction.

Granger did not respond to messages seeking comment on the sale.

In ordering the sale last week, DuBose approved the process by which the auction will be conducted. Auctioneers Tranzon Driggers were appointed to handle the sale.

The company's Web site listed the property among its offerings Tuesday ? touting the partially completed 60-slip marina, preplanned residential neighborhoods and areas for retail development and noted that the property would be offered in 10 separate pieces.

Sealed bids on each of those parcels are due by Nov. 19 and will be considered by the bank and the receiver. The highest bidders will be invited to a live auction planned at Bon Secour Village sales center that day at 11 a.m. DuBose has also scheduled a Dec. 3 hearing in Mobile's federal court to finalize any sale.

Bon Secour Village's lawyer, David Anderson, said two of the developers, Rick Skelton and Clint Guthrie, continue to be interested in bringing the development to fruition while also trying to get the most money possible for Wachovia.

"Clint and Rick are trying to get buyers to come to the auction and trying to put deals together to bring the project together," he said Tuesday.


Note: The official Bon Secour Village website seems to be non-functional at the moment.

This page is about a Gulf Coast vacation resort property auction. Orange Beach and Gulf Shores offer the perfect balance of non-stop activity and really relaxing down-time. Play a round or two on one of our championship golf courses. Grab your fishing pole and heaad out for deep-sea adventure on one of the Gulf Shores and Orange Beach fishing charters. Travel back in history with a visit to historic Fort Morgan, the site of the Civil War Battle of Mobile Bay. Mother Nature has tons to offer if you like to hike wildlife trails or go birding  for shorebirds and migrating birds.Bring the whole family for a fun bech vacation downhere on the Gulf of Mexico.




Click here to see photos taken on February 8, 2007

Coastal Living Idea House

July 29, 2005 Newspaper Report on Sales.



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