Auction of PDIG Properties Expected Tomorrow

Image: Some of the properties set to be auctioned tomorrow.

Today a judge in Cuyahoga County Court in Ohio denied a motion by City Center II Project, LLC and the Park District Investment Group, LLC (PDIG) to issue an injunction that would have stopped the mortgage foreclosure auction scheduled on July 30 regarding property in the Park District in East Lansing that has been a blight on the west end of downtown for many years.

Therefore, the auction is expected to be held as scheduled. The notice of the auction, published issued on June 29 in Legal News, said the auction will be held at 10:00 a.m. on the third floor of the Veterans Memorial Courthouse at 313 West Kalamazoo Street in Lansing.

The seven parcels that will be auctioned to the highest bidder include the “big bank building” at Grand River Avenue and Abbot Road, the five commercial buildings between that building and People’s Church, and the two Evergreen Arms apartment buildings adjacent to Valley Court Park. All these buildings are currently boarded up.

According to the auction notice, “The amount due on the Mortgage as of the date of this Notice is $38,455,974.68 (which includes $134,000 in fees and costs due as of May 31, 2015) plus other certain costs and expenses paid by Lender to collect the debt and to protect its rights under the Mortgage. . . . Lender will apply the sale proceeds to the amount due on the Mortgage as stated above plus interest on the amount due at $10,434.03 per day, and any amount subsequently paid by Lender to protect its interest in the property.”

The news on the Cuyahoga County Court website was terse:

Motion hearing held 07/27/15. Based upon review of the motions submitted, evidence adduced at hearing, and application law, PLTF [Plaintiff] City Center Two Project, L.L.C.;s  07/22/2015 motion for temporary restraining order and preliminary injunction is hereby denied. Opinion to follow. Notice issued.

It is not clear when the opinion will be available, but the decision to allow the auction to go forward means the auction can go ahead.