COEUR d'ALENE - Black Rock Development's trend of floundering projects continued last week when the company settled on a foreclosure agreement on a Coeur d'Alene development.
After two years of negotiations, American Bank and Black Rock finalized the terms last week on the foreclosure of Black Rock North, a private golf community north of The Club at Black Rock.
"Essentially the collapse of the real estate market that occurred after 2007 has rendered many projects unfeasible," explained Barry Davidson, attorney for company owner Marshall Chesrown. "Especially with the lack of access to capital, and the lack of sales in high-end real estate projects and developments."
Black Rock North, an unfinished project on 1,100 acres, had an underlying indebtedness of $17.6 million, Davidson said.
The bank filed a foreclosure suit in February 2009, he said, and since then Black Rock has been in negotiations with the bank and other entities involved in the development.
"It's complex litigation," Davidson said of the lengthy discussion period. "The primary parties to the foreclosure case were able to negotiate a resolution of their respective interests in the property."
Several other development entities, like BRN Development Inc., had invested in the project, Davidson added.
"It's a large property that had been improved with several million dollars worth of (features)," he said.
The foreclosure will follow with a sheriff's sale of the development in the next 60 days.
Chesrown, who has been behind several luxury developments in North Idaho and his native Spokane, was also hit with a multi-million dollar lawsuit earlier this month over his Ridge at Sunup Bay gated community.
The suit, filed by Mountain West Bank, concerns non-payment on loans for the project.
Last year, Washington Trust Bank obtained the assets of The Club at Black Rock golf and housing development through a deed in lieu of foreclosure.
A group of Black Rock homeowners purchased The Club at Black Rock golf course late last year.
The phone for the Black Rock Development company has been disconnected.
The business is not doing any further development work, Davidson said.
"It's the hope of all parties that the development of Black Rock North will continue, and that it will be an asset to the Coeur d'Alene community in the future," he said.