PDIG Foreclosure Sale Postponed

Image: The back of one of the vacant properties that was to be auctioned today, next to Peoples Church

Today the Ingham County Sherriff’s office held an auction of six of the seven properties in the PDIG project area downtown—all except the “big bank building” at 100 West Grand River Avenue. The minimum bid was set at $2.5 million, and those wishing to bid had to show a certified check for that amount. When the auction occurred at about 10:05 am, no one bid, but by auction rules, potential bidders had until 11 am to produce a certified check to reopen the sale. At about 10:35 am, an unidentified woman representing the lender pulled the sale, “adjourning” it.

The room was crowded—a clerk told us there were at least twice as many people as normal—although many from East Lansing were only in attendance to watch. Colin Cronin and Tom Kuschinski of DTN were present, but did not make a bid before the sale was adjourned.

Ridgeway White of the Flint architectural and development firm Lurvey White Ventures, was also in attendance. Lurvey White had put in a proposal for the Park District area during the proposal process several years ago, but lost out to DTN. When no one bid on the first pass, White said he would bid $2.5 million, but because he did not have a certified check, his bid was not accepted. He ran off, apparently to get a check, but did not return before the lender adjourned the sale.

What all this means is that, for now, nothing has changed with these properties. It is not yet clear whether the parcels involved—including the “big bank building,” the commercial property between that and Peoples Church, and the Evergreen Arms apartments, all vacant and boarded-up—will be sold at a later sale.

According to the adjournment notice, the amount due on the Mortgage today for the six parcels is “not less than $4,598,045.83.” This does not include the “big bank building” or all the other loans and liens associated with these properties.

ELi will continue to follow this story.

NOTE: This article was changed on August 2, 2015, to correct the spelling of Tom Kuschinski's last name.