Charter Schools and Banks and Foreclosures and Indiana Banks and K-12 and Old National and Banking & Finance and Mortgages and Education & Workforce Development

Bank foreclosing on former charter school property

February 25, 2013

Old National Bank is suing the operator of a charter school that closed last summer in Indianapolis, claiming it failed to pay off the $1.8 million balance on its mortgage.

The Project School in August lost a court battle to stay open after Mayor Greg Ballard revoked the school’s charter due to poor test scores and financial issues.

Old National filed Feb. 19 in Marion Superior Court to foreclose on the school’s property at 1145 E. 22nd St. The Evansville-based bank says in its complaint that the school defaulted on the loan in August. The original loan amount was about $2 million.

The school operated in a portion of a renovated 260,000-square-foot manufacturing facility that was built as the home of the National Automobile Vehicle Co. in 1904.

The Project School opened in Indianapolis in 2008 and continues to operate a sister site in Bloomington.

Former leaders of the school did not return phone and e-mail messages seeking comment on the foreclosure.
 

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