OTTERTAIL, Minn. – In another sign of the troubled economy, Spire Financial CU has filed to foreclose on more than $13 million in delinquent loans made to a distressed commercial project here.
The combination golf course, hotel, conference center and water park known as Thumper Pond refinanced its loans with the St. Paul credit union in 2006 and now owes Spire Financial $13.4 million, according to a June 23 Notice of Mortgage Foreclosure.
Owners of the resort development expressed optimism they could work out their financial problems, but signs are that partners, like Choice Hotels and its Comfort Suites affiliate are abandoning the project.
Monday’s notice was the first of six foreclosure notices that will be published, prior to a foreclosure sale, scheduled for July 3.
The project was named after the developer’s grandson, whose nickname is Thumper.
Spire Financial was formerly known as Twin City Co-ops FCU.
