Staying with the story
The Springfield News-Sun has provided ongoing coverage of the controversial Twin Creeks Subdivision for more than a decade.
The deeds to several parcels in New Carlisle’s controversial Twin Creeks Subdivision were transferred to the city last week, to enable officials to sell the properties to a buyer clear of liens.
New Carlisle Mayor Lowell McGlothin said the city had a potential buyer for all of the 26 properties prior to the parcels being included in two recent sheriff’s sales where one lot, 502 Colony Trail, was sold for $6,700.
McGlothin said City Manager Randy Bridge will be working with the potential buyer if the person is still interested in purchasing the lots.
“It’s in the works. We did have a buyer. I think we still have a buyer for them,” McGlothin said. “The problem is how much money the city will end up with is very debatable … We have no idea how much money we may or may not get.”
Bridge said his predecessor had worked with a potential buyer and he plans to “re-evaluate” the discussion with that potential buyer to see if the plan fits his terms.
He also said others have expressed interest in purchasing the lots, but added “nothing is set in stone.”
The sale to a potential buyer could end a 12-year ordeal and help the city recoup some of a roughly $1 million bond issued for infrastructure work at the development.
The debt owed on Twin Creeks has been the underlying cause of the city’s recent financial issues, New Carlisle councilmen say. The city made more than $100,000 in cuts to its 2015 general fund, including cutting the number of deputies who patrol the city in half.
New Carlisle has been required to pay about $80,000 annually from its general fund because the city co-signed the bond for the development. The parcels were originally purchased by a Michigan investor in 2004, but the development became defunct when he died three years later.
In the meantime, the development became one of the county’s largest delinquent property taxpayers.
“It’s been a drain on our funds to say the least because we had to pay on the infrastructure bonds that we co-signed on,” McGlothin said. “We were told it was never going to come back to the city, but of course, never is a long time, I guess, because it certainly did.”
He said the city was hit by a perfect storm after co-signing the infrastructure bonds.
“Everything just fell apart. The man died. Housing went down the tubes,” McGlothin said.
New Carlisle officials say they hope the city can rebound financially and bring more residents to the city after selling the lots.
“Yes, it’s going to be a relief once these (nearly) 30 are sold,” Councilman John Krabacher said. “As far as I know there’s still a potential buyer and he’ll buy the whole lot in one big swoop. So it’s going to be great for the city. It’s going to bring … more people to the city.
“It’s going to recoup some (of the money), not 100 percent. We’ll be liable for some of the infrastructure,” he added.
About the Author