DES MOINES, Iowa – Community Business Lenders, a CUSO owned by two credit unions and the Iowa CU League, late last week filed a suit against a local developer seeking $12 million on two loans connected with Michael’s Landing, a 340-acre residential development in West Des Moines.
The developer, Regency, has notified the credit union lenders that the project has ceased and cannot proceed, according to the suit.
Community Business Lenders seeks to foreclose on 76 acres in Michael’s Landing, named after the late Regency co-founder, Michael Myers. The CUSO says the developers have defaulted on two notes – one for $9.5 million and one for $2.4 million.
In April, Regency ceased operations, citing a troubled housing market and dwindling financing.
Officials with Community Lenders did not return phone calls from The Credit Union Journal seeking comment.
The CUSO is owned by Community Choice CU, MEMBERS1st Community CU and the Iowa League.
