Five and a half years after initial discussions began, officials know little about the future of the land at the northwest corner of Ind. 18 and Interstate 69 with a portion of the land set to be sold at auction in the fall and the main developer filing for bankruptcy in June.
On Friday, Grant County Sheriff Darrell Himelick signed a notice that four parcels of property planned to be developed into apartments and shops are set to go to the highest bidder in a sheriff’s sale on Oct. 2.
Michael Egan, the California-based developer who in 2007 founded and remains a managing member for Marion Land Development — which has been the main developer for the area — filed for bankruptcy in June. According to records, Egan stated his liabilities were almost as much as his assets, though the case was dismissed because he did not provide timely information to the court.
The area has been on a long, winding path but currently is home to little more than an abandoned gas station.
In 2007, the Marion City Council approved taking out up to $180 million in TIF money for bonds to fund development at the Interstate 69 interchange. Developers dubbed the 200-odd acres in the northwest corner “the Renaissance.”
At that time, tech company Veriana Networks had already announced plans to build its global headquarters at the site, bringing some 280 jobs that would pay an average of $41 per hour by 2012.
Developers soon revealed plans for a housing complex called Renaissance Place, set for groundbreaking in 2010, and Marion General Hospital entered into negotiations with those developers to build a new medical facility at the site. Untold other companies and retail stores were expected to populate the rest of the Renaissance.
However, the projects never got off the ground.
Veriana Networks skipped town, taking an incentive package to move to Muncie before going under. That deal ended in multiple lawsuits and now the city of Muncie owns 15 acres of Marion land near Interstate 69 and Ind. 18.
Marion Land Development recently lost two foreclosure lawsuits — and soon stands to lose four parcels of land that would have been the Renaissance.
Development struggles near the interchange also include a proposed sports and entertainment venue. The Marion Sports Authority owns one parcel on the northwest corner surrounded by property owned by Marion Land Development and, now, the city of Muncie, as part of the settlement with Veriana.
Marion’s Redevelopment Commission backed the sale of $30 million in tax-exempt Midwest Disaster Area Bonds that would have funded construction. The bonds were due to be sold by Jan. 1 but no buyer could be found.
City Development Director Lisa Dominisse, who was hired this spring, said she was briefly told about the northwest corner project — that it was supposed to be a large-scale development with housing and businesses — but she has had no interaction with the project or the developers since.
“I don’t even know their names,” she said.
Darren Reese, who served as city development director from late 2009 to spring 2013, knew little more about the project’s history. He said Marion Land Development’s involvement preceded him and the city’s relationship with the company was no different than it was with any other potential developer.
“We had interactions with them but it was basically by the developer, not us,” he said.
Seybold said in 2007 that Veriana would represent a $112 million investment in the community. He could not be reached for comment Monday.
Egan said Friday he hopes to find a “solution” to “satisfy” the latest bank to foreclose on him before those four parcels of potential Renaissance land are sold to the highest bidder in the sheriff’s sale this fall.
He used the same words last year when the same properties were at risk of being lost in a Grant County tax sale because of $225,000 in back property taxes. MutualBank ended up paying the taxes to prevent the loss.
Now Marion Land Development and Egan are among several defendants who owe more than $4 million, according to a foreclosure judgment made last month. The same defendants received the first foreclosure judgment, of more than $1 million, regarding nearby property in December.
The defendants also include John W. Nicholson of California and Craig Nicholson of Massachusetts. A company called Renaissance Property Marion, whose address listed in the suit is a post office box in Massachusetts, is also named as a defendant.
Massachusetts state records show no company by that name is registered in the state, but Indiana Secretary of State records show that Dale W. Economan, a Marion-based doctor, registered the company with the state in 2009. He could not be reached for comment.
Federal court records show Economan and his wife jointly filed for Chapter 7 bankruptcy in November 2010 because their liabilities exceeded their assets by $2.2 million. The court discharged their debt in September 2011.
Renaissance Property Marion was dissolved in April, according state records.