PLAINS TWP. — Ross Spengler, managing partner at Waterfront Professional Park, said his corporation’s mortgage didn’t go into default — rather it matured, forcing a market search for a new bank to borrow $6.5 million.
“That’s not an easy task,” Spengler said Tuesday, the day after documents were filed at the Luzerne County Courthouse claiming the Waterfront Professional Park on River Street in Plains Township has defaulted on its $7.1 million mortgage.
According to the filing, a loan default judgment was filed against the complex by C&I Solutions II, a limited liability company headquartered in Delaware that assumed control of the mortgage from First National Community Bank in December.
“When our mortgage came due, the bank didn’t want to renew it; they wouldn’t re-write the paper,” Spengler explained.
He said the note was sold to C&I Solutions at a discounted rate, but the corporation’s monthly mortgage payment went from $45,000 to $72,000.
“That’s why we’re trying to refinance with a new bank,” Spengler said. “But it could take 30 to 45 days to get it done.”
Spengler said he and partner Robert Care have directed their attorneys to contact C&I to work out an understanding. He said that dialogue has already begun.
Spengler said he’s not worried about losing the property and the attorneys will “re-open the judgment” if need be.
According to the court documents, C&I is also seeking $641,611.33 in attorneys fees, bringing the total judgment sought to more than $7.6 million.
The complaint filed on behalf of C&I contends Waterfront “breached and violated” the terms of the note by failing to timely pay required payments.
Spengler said Waterfront Professional Park LLC secured the FNCB loan in 2002 for three parcels of property that comprise the complex that leases space to several businesses, including the River Grille and Commonwealth Health.
Spengler said he closed his banquet facility in October to re-design the space to accommodate Commonwealth Health.
According to Luzerne County Tax Claim Bureau records, Waterfront Professional Park LLC, owes back taxes on two properties on the complex — one for $76,610.58 and the other for $920.92.
“We have an agreement with the Tax Claim Bureau, and we pay $5,000 per month to pay back those taxes,” Spengler said.