Article Title: Fairvue clubhouse to be auctioned Dec. 20
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A foreclosure auction has been set for the private clubhouse at Fairvue Plantation, scheduled to take place a little more than a year after the development company that owned it declared bankruptcy.
First State Bank holds a claim for $4.6 million in unpaid loans that were made to TLP DevCo and its various entities, of which about $2 million was secured using the clubhouse property as collateral. The auction will help the bank recover some of that claim.
It is unclear what the clubhouse auction might mean for the future of the Fairvue golf course, on which a different bank, American Security Bank and Trust, holds the lien. The attorney representing American Security did not return a phone call for comment by this newspaper’s deadline Wednesday.
At least one group has already shown interest in purchasing the members-only clubhouse — the homeowners living in the subdivision.
The president of the Fairvue Plantation Homeowners Association, Earl Fischer, said the residents have been “constantly” in meetings with the banks and haven’t made a definitive decision yet on which direction they will go.
Other Bidders Expected
However, the homeowners aren’t expecting to be the only interested party on the steps of the Sumner County Courthouse when the auction takes place the week before Christmas.
“The banks are wanting to move very quickly, which means the Homeowners Association would have to make up its mind soon,” Fischer said. “We certainly won’t be the only ones interested in purchasing this property.”
The appraised value of the clubhouse, according to Sumner County property assessment data, was $3.5 million in 2009; however, in bankruptcy documents filed in August, the property was independently appraised for its value if it were liquidated — sold at a foreclosure auction — and in that case it came in at $1.6 million.
As to how much the homeowners might be willing to pay for the property, Fischer said it was too early to tell, though he praised the banks for being “extremely cooperative” and “very willing to share information” in the past week.
“Of course the banks hope to recover as much of the loans as they can, but they have given us no indication at this point of what they expect out of this sale or what their bottom line is that they would take at this point,” he said.
Purchaser Might Pick Up $150k Tax Bill
The purchaser could also be liable for any unpaid property taxes, including penalty and interest on back taxes, according to the foreclosure notice.
City Attorney Joe Thompson said taxes on the clubhouse haven’t been paid since 2008.
The city is looking to collect about $50,000 in back taxes, and the county would be owed about twice that — making for a total bill of roughly $150,000.
The auction is scheduled to begin at 10:01 a.m. on Dec. 20 on the steps of the Sumner County Courthouse.
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