Developers Jack Roddy and Wayne Pierce owe approximately $42 million to creditors, including First Blackhawk Financial Corp., which recently attempted to foreclose on the 2,116-acre ranch and two-year-old golf course after the pair's company, Merchant Land Fund I, defaulted on a $10 million loan. The bankruptcy prevented the lender from foreclosing.
The developers are struggling to prevent the sale of the golf course and ranch to pay creditors. Instead, they plan to continue their plan to develop an upscale housing complex on the ranch and pay off their debt through the sale of houses.
However, investors who bought $36 million in tax-exempt municipal bonds to finance the golf course and ranch plans want the property to be sold so they get their money back. The developers are protected from foreclosure until a court decision is made.
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