The Carroll County Industrial Development Authority (IDA) will allow HATCO, LLC to assume the current note on Market Village rather than foreclose on the property located next to the Farmers’ Market facility at Interstate-77. The decision was announced following a closed session during the IDA’s Dec. 18 meeting.
Weststar Investments, which was allowed to develop the retail spaces on county land, has been unable to repay $85,000 in financing provided by the IDA in exchange for a deed of trust. The IDA had previously authorized County Attorney Jim Cornwell to foreclose on the property.
“The terms are that HATCO will pay the IDA $5,000 down at closing, along with paying the IDA legal fees of $7,800 and provide the IDA as first position on a deed of trust for the property where the IDA will finance the principal and interest balance for up to one year at an interest rate of six percent,” said Carroll County Administrator Gary Larrowe in an email to The Carroll News.
RGM Erectors had filed a complaint against Weststar, claiming that Weststar had not paid RGM for its construction work on two buildings. According to court papers, a default judgement of $657,983 was issued against Weststar. Officials of the two companies then worked out a deal to deed the Market Village to HATCO, thus allowing HATCO to take over the financing.
“This action allows for the IDA to continue to be in a very secure position and earn six percent on their money, and get a down deposit on the project and recapture legal fees and not have to foreclose on the property,” wrote Larrowe in his email.
The closed meeting followed a tour of the two Kentucky Derby Hosier buildings recently purchased by the IDA. After approving of the HATCO deal, the IDA then voted to declare the propane gas tanks and contents at the KDH #8 property surplus and advertise it for sale as soon as the paper work is concluded on the sale of the buildings.
In addition, the IDA is acquiring insurance and associated services on the two buildings and property, according to Larrowe.