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<br />Finance and Commerce - Ban1e takes back Summerset Meadows land <br /> <br />Page 1 of 1 <br /> <br />]fI;1N!,!A~}V~EklfN'.'.'..D'l1t'Mr. ii~if~~~~l <br />11-:l-:> .:' .l}~t\J,'._.,-l1; . W ~... : ...'JljVl:QillJ~~:. <br /> <br />Real Estate <br /> <br />December 22, 2009 <br /> <br />Bank takes back SUnimerset Meadows land <br />by Burl Gilyard Staff Writer <br /> <br />Citizens State Bank has taken back a 187-acre tract of land in the Anoka County town <br />of Ramsey after development plans stalled. <br /> <br />Plans for the Summerset Meadows 'proJect ca.lled for a mix of residential and commercial development. At one point, expansive plans <br />called for approximately 600 units of housing and 38.5 acres of,commercial development. Today, it remains raw, undeveloped land. <br /> <br />Tom Van Pelt, senior vice president wi,th the Hudson, Wis.-based Citizens State Bank, said that th~ bank got the property- back this fall. <br />He said that the bank expects to put the large, ~ndelJeloped site up for sale in January. . <br /> <br />, , <br />"We're in the process of finalizing a listing arrangement," Van Pelt said. "We're still trying to figure out what the appropriate listing price <br />is in this market." - <br /> <br />In mid-November, Citizens State Bank secured a judgment of $11.45 million against Summerset Meadows LLC and developer Gary T. <br />Mulcahy. .' <br /> <br />Ramsey is 27 miles northwest of downtown Minneapolis. The city's long-range planning goals outline a mix of uses in the area. <br /> <br />Van Pelt acknowledges that the loan, issued in 2006, was substantial for the community bank. <br /> <br />"It's a large loan. We have a syndicate of participating banks, but yes, this would be a large transaction for us," Van Pelt said. <br /> <br />And Van Pelt acknowledges the ongoing challenges for the real estate market. There's no shortage of would-be development land <br />available for sale, but not many takers. ' <br /> <br />"Given the condition of the market, we're not certain how long it will take to market the real estate." Van Pelt said. <br /> <br />The Summerset Meadows land sits near the site of another project tliat never panned out as planned: Ramsey Town Center. <br /> <br />Van Pelt noted that the only connection between the two is geographic proximity. <br /> <br />"It was not at all connected to the Ramsey Town [Center] project," Van Pelt said. <br /> <br />The Ramsey TownCenter project devolved into a complex foreclosure case and federal bank-fraud and money-laundering indiCtments <br />against three bankers involved in the project. Ultimately, the bankers each pleaded guilty to a single conspiracy count. <br /> <br />, Tpe city of Ramsey bought 150 acres, about half of the Ramsey Town Center, this year for $6.75 rnillion: <br /> <br />Copyright 2009 FInance and Commerce AU Rights Reserved <br />u..S. Trust BuildIng Suite laO, Minneapolis, MN 55402 (612) 333-4244 <br /> <br />http://www.finance-commerce.com/pdnt.cfm?recID=14502 <br />14 <br /> <br />12/23/2009 <br /> <br />:':;_:;:.;o...~";... <br />