IBJNews

Bank buys part of property targeted for Fishers water park

Back to TopCommentsE-mailPrintBookmark and Share

A high-profile piece of land in Fishers that is part of a proposed hotel and water park project has been bought by the bank that foreclosed upon it.

Evansville-based Old National Bank purchased the parcel for $5.9 million during a sheriff’s sale on Dec. 17 that drew no other bidders. The bank used its debt in the property to acquire it—a legal maneuver known as a “credit bid.”

A spokeswoman for Old National said the bank plans to maintain ownership “until we have a buyer that meets our price requirements.”

The bank’s purchase of the land provides the latest twist in a more than 2-year-old saga that leaves the hotel and water park’s future even cloudier.

Paradise Bay was to have been constructed on the former Britton Golf Course site at State Road 37 and East 131st Street.

The $80 million project, led by Indianapolis-based Puller Group, includes plans for a 16-acre water park and 244-room Wyndham Hotel within Fishers Marketplace, a mix of shops, restaurants and offices.

Old National foreclosed in August on the south half of the 104-acre site, which was owned by Indianapolis developer Skjodt Thomas & Associates.

Complicating matters is the fact Puller Group, which owns the other half, is also facing foreclosure on its parcel. Fifth Third Bank filed a complaint in July against Puller and H20 Resorts II LLC, an entity formed to develop the hotel and water park, and is seeking to collect nearly $8.6 million owed on the balance of the loan.

The foreclosure proceedings are pending in Hamilton Superior Court.

Puller Group CEO Kenneth Puller has said the adjoining property now owned by Old National is important to the water park project because of unfinished infrastructure involving a sewer system that Skjodt Thomas was expected to install.

Skjodt Thomas, which purchased the former golf course property and sold 57 acres to Puller Group, had planned to develop its parcel under the Britton Park Development LLC name, with the infrastructure serving both sides. Work stopped in the summer of 2008, after Britton Park failed to repay a $12.3 million loan it received from Old National, according to a lawsuit filed in 2008 by the lender.

Skjodt Thomas co-owner Paul Skjodt is the owner of the Indiana Ice and the son-in-law of former Indiana Pacers co-owner Melvin Simon, who died in September.

Old National received an $11.8 million judgment against Britton Park upon foreclosing on the property. If the bank sells the land for $5.9 million, the amount listed in the credit bid, the bank could pursue Britton Park for the difference. The credit bid likely is based on appraisals of the property, bankruptcy experts said.

The bank’s mortgage on the property constitutes a lien, which gives it the right to take possession and sell it to pay off the debt, using a credit bid to protect its interests. 

Wendy Brewer, a lawyer at Indianapolis-based Barnes & Thornburg LLP who is  representing Old National, said the bank is unlikely to recoup the entire amount of the loan.

“We’d have another $5.9 million in remaining judgment we could try to collect on,” she said, “but there’s nothing to chase Britton for.”

Instead, Old National will attempt to recover as much as it can by getting the best offer available, Brewer said.

Interest in the property remains high, Fishers attorney Doug Church said, noting the town has fielded inquiries about zoning issues and the availability of economic development incentives.

“It’s a great location,” he said. “That’s never changed.”

Banks’ reluctance to lend money as a result of the credit crunch could make an immediate sale more difficult.
 

ADVERTISEMENT

  • Someone Please Do Something
    I didn't like the waterpark idea, but I hate the mess that it is now. Please, sombody buy up the land and develop it. What an absolute mess. The golf course was very nice, wish they had kept it.

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. I had read earlier this spring that Noodles & Co was going to open in the Fishers Marketplace (which is SR 37 and 131st St, not 141st St, just FYI). Any word on that? Also, do you happen to know what is being built in Carmel at Pennsylvania and Old Meridian? May just be an office building but I'm not sure.

  2. I'm sorry, but you are flat out wrong. There are few tracks in the world with the history of IMS and probably NO OTHER as widely known and recognized. I don't care what you think about the stat of Indy Car racing, these are pretty hard things to dispute.

  3. Also wondering if there is an update on the Brockway Pub-Danny Boy restaurant/taproom that was planned for the village as well?

  4. Why does the majority get to trample on the rights of the minority? You do realize that banning gay marriage does not rid the world of gay people, right? They are still going to be around and they are still going to continue to exist. The best way to get it all out of the spotlight? LEGALIZE IT! If gay marriage is legal, they will get to stop trying to push for it and you will get to stop seeing it all over the news. Why do Christians get to decide what is moral?? Why do you get to push your religion on others? How would legalizing gay marriage expose their lifestyle to your children? By the way, their lifestyle is going to continue whether gay marriage is legalized or not. It's been legal in Canada for quite a while now and they seem to be doing just fine. What about actual rules handed down by God? What about not working on Sundays? What about obeying your parents? What about adultery? These are in the 10 Commandments, the most important of God's rules. Yet they are all perfectly legal. What about divorce? Only God is allowed to dissolve a marriage so why don't you work hard to get divorce banned? Why do you get to pick and choose the parts of the Bible you care about?

  5. Look at the bright side. With the new Lowe's call center, that means 1000 jobs at $10 bucks an hour. IMS has to be drooling over all that disposable income. If those employees can save all their extra money after bills, in five years they can go to the race LIVE. Can you say attendance boost?

ADVERTISEMENT