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Lender's suit says homebuilder owes $12.8M on loans

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A prominent local homebuilder and commercial developer owes $12.8 million on two loans he took out to buy property on Indianapolis’ south side that now are in default, according to a lawsuit filed by the company’s lender.

J. Greg Allen is the target of the complaint from M&I Bank, which alleges the Greenwood-based businessman failed to pay the loans he received in May 2008.

Allen borrowed the money to purchase two tracts of vacant land—59.7 acres and 13.3 acres—on the northeast corner of Emerson Avenue and County Line Road, the suit said.

As of June 24, Allen owed the entire $9 million balance on one loan and $3.8 million in principal on another $5.5 million loan, according to the suit. In addition, M&I claimed the builder owes $323,876 in interest on the two loans.

Milwaukee-based M&I is asking a Marion Superior Court judge to foreclose on the properties and issue a court order to sell the real estate to pay the judgment.

“Despite demand by M&I, the guarantor has failed and refused to honor his obligation to M&I pursuant to the terms and conditions of his guaranty and the other loan documents,” M&I charged in its suit.

But J. Greg Allen, who also operates a commercial division that developed downtown’s Allen Plaza, said he’s already come to an agreement with M&I to work out the debt and that he expects the suit to be withdrawn soon.

“I’ve been with that bank [formerly First Indiana Bank in Indianapolis] for 25 years,” Allen said, “and we’re in good standing with them.”

A spokeswoman for the bank declined to comment on the lawsuit.

J. Greg Allen Builder and Princeton Homes, both owned by Allen, folded recently after he filed suit against two longtime executives. Allen alleges in a suit filed in Johnson Superior Court that the two stole nearly $1 million “over a long period of time” from the companies. One of the executives has denied wrongdoing; an attorney for the other did not return a call from IBJ.

J. Greg Allen Builder, founded in 1986, ranked ninth among Indianapolis-area custom home builders in IBJ’s most recent Book of Lists with $5.7 million in revenue in 2009. It closed on 12 homes that year with an average sale price of $525,000.

Princeton Homes was the area’s 10th-largest home builder in 2009 with 30 permits filed.

 

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  • Executives No More
    The executives know that they got away with whatever they did..... There is no justice in today's court system. It is easy money for lawyers and mediators that will ultimately tell him to "settle". We need to clean up our court system.
  • Karma always come around
    The best of people are suffering during these difficult times. Some tell the truth of it. While others like this situation choose to continue to deceit and blame others for their failures Be honest and take responsibilty for once
  • Wanksta
    How can he say he's in "good standing" with the bank? Erroneous! It's no wonder banks don't do deals on a handshake anymore...this guy says he banked with them for 25 years and this is how he holds up his end of the contract after that relationship?
  • Here we go again
    Another "big spender" goes down in Indy...shocking. Why do all of these guys who brag the loudest about their money always end up in the news for being millions in debt...with no way to pay...then blame someone else. Time to step up and pay these people back and quit making excuses.
  • Hmmmphf....
    Anyone suprised by this????

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  1. You are correct that Obamacare requires health insurance policies to include richer benefits and protects patients who get sick. That's what I was getting at when I wrote above, "That’s because Obamacare required insurers to take all customers, regardless of their health status, and also established a floor on how skimpy the benefits paid for by health plans could be." I think it's vital to know exactly how much the essential health benefits are costing over previous policies. Unless we know the cost of the law, we can't do a cost-benefit analysis. Taxes were raised in order to offset a 31% rise in health insurance premiums, an increase that paid for richer benefits. Are those richer benefits worth that much or not? That's the question we need to answer. This study at least gets us started on doing so.

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  3. Jim, thanks for always ready my stuff and providing thoughtful comments. I am sure that someone more familiar with research design and methods could take issue with Kowalski's study. I thought it was of considerable value, however, because so far we have been crediting Obamacare for all the gains in coverage and all price increases, neither of which is entirely fair. This is at least a rigorous attempt to sort things out. Maybe a quixotic attempt, but it's one of the first ones I've seen try to do it in a sophisticated way.

  4. In addition to rewriting history, the paper (or at least your summary of it) ignores that Obamacare policies now must provide "essential health benefits". Maybe Mr Wall has always been insured in a group plan but even group plans had holes you could drive a truck through, like the Colts defensive line last night. Individual plans were even worse. So, when you come up with a study that factors that in, let me know, otherwise the numbers are garbage.

  5. You guys are absolutely right: Cummins should build a massive 80-story high rise, and give each employee 5 floors. Or, I suppose they could always rent out the top floors if they wanted, since downtown office space is bursting at the seams (http://www.ibj.com/article?articleId=49481).

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