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LaFavre offers city part of former golf course
Published Tuesday, August 26, 2008
Commercial developer Scott LaFavre has offered to sell 50 acres of the former Albert Lea Golf Club to the city of Albert Lea. However, the land is in the possession of American Bank, which raises questions.
During last week’s preagenda meeting, City Manager Victoria Simonsen said LaFavre hired Albert Lea real estate broker Greg Jensen to sell all of his properties in Albert Lea.
The properties Jensen mentioned to Simonsen include the back nine in the controversial Eagle’s Rest development and 76 acres of land by Interstate 90 and Freeborn County Road 20 (Bath Road).
In December 2007, American Bank of St. Paul purchased the 100-acre former Albert Lea Golf Club during a public auction of the property at the Freeborn County Government Center. The auction took place after LaFavre failed to make necessary mortgage payments, resulting in foreclosure.
Scott LaFavre
Only a handful of people were present at the sale, and only one bid was made.
The land sold for $1,031,522.
Because of the complications, the city wants to know whether LaFavre legally can sell the land or whether it has to be done by American Bank.
At that point, LaFavre had up to a year to redeem the Eagle’s Rest property back from the bank for the amount it purchased it — plus interest. His deadline is the end of December.
Jensen said he and Simonsen talked about different figures for the land, but the conversation was very informal.
The current value of one acre of undeveloped land, as approved by the Albert Lea City Council, is $7,500.
“I told Greg, even if we wanted to buy it, we don’t have the money to buy $500,000 worth of land,” Simonsen said.
Victoria Simonsen
During discussion of the inquiry during the Thursday preagenda meeting, 1st Ward Councilor Vern Rasmussen said he’d love to have the property, but right now the city needs to be focused on cutting costs, not paying more.
“We need to focus on making what we have better,” Rasmussen said.
The acreage by Interstate 90 goes up for auction Sept. 10.
Comments
Posted by carolpedersen (anonymous) on August 25, 2008 at 4:55 p.m. (Suggest removal)
I don't think we should buy his land. He did just what I thought he would do when he bought the golf course. He wouldn't finish it. Right know it looks like a mess, why did he dig it up if he wasn't prepared to finish it. It is just a weed patch know.
Posted by tmfresh (anonymous) on August 25, 2008 at 9:33 p.m. (Suggest removal)
That land should have NEVER been sold to that man. : (
Posted by sophie (anonymous) on August 25, 2008 at 9:54 p.m. (Suggest removal)
tmfresh.
Then someone should have bought it from the former owners. I am surprised that something did not happen sooner. The course has lost money for years.
Posted by wakemaker (anonymous) on August 25, 2008 at 11:05 p.m. (Suggest removal)
The course may have been losing money for years, but that does not excuse the developer for destroying a 100 year old course and leaving it unfinished. Now he's offering it up to the City? Why pay him anything...if the City wants it they should wait until the redemption period is up and buy it from the bank. I wouldn't put a dime in that clowns pocket.
Posted by leeleebelle (anonymous) on August 25, 2008 at 11:34 p.m. (Suggest removal)
What a pathetic situation this turned out to be.
Posted by Albertlea (anonymous) on August 26, 2008 at 6:10 a.m. (Suggest removal)
Par for the course in Albert Lea. Your city fathers can't get out of the rough.
Posted by sophie (anonymous) on August 26, 2008 at 9:23 a.m. (Suggest removal)
wakemaker. I am with you, but the course was bought and sold so many times, we, and I mean we, should have seen this coming. But hindsight is always 20/20.
I find it hard to believe the city is even considering this.
Posted by Wildbill (anonymous) on August 26, 2008 at 10:31 a.m. (Suggest removal)
Don't blame the city. Some of our local business people don't seem to be getting their act together either.
Both the City and REC have investment in Tiger Hills and
that seems to be dead.
The only industry our economic promoters are bringing here
are wet industry and warehouses. These workers are definitely going to buy these $150,000 plus homes.
Posted by bobbyg (anonymous) on August 26, 2008 at 10:35 a.m. (Suggest removal)
I AGREE WITH CAROL, DO NOT BUY HIS LAND!!!
But wouldn't you know, some "sniveling little get" will buy it at blow out prices and capitalize when everyone forgets about it's history!
Guaranteed, this is the way America works! Just look at how forgetful America is regarding 9-11 ??
The liberal politicians want to put 9-11 behind us, when it comes to security, as if it nothing happen again!
Wake up America, and stop being a herd of sheep!
Posted by tmfresh (anonymous) on August 26, 2008 at 11:02 a.m. (Suggest removal)
I agree with wakemaker! If anyone buys that land wait and buy it from the bank. He did that to himself and he should pay the price and no one else.
Posted by Wildbill (anonymous) on August 26, 2008 at 2:07 p.m. (Suggest removal)
Yes, let a private developer buy it from the bank.
Posted by nesaajr (anonymous) on August 26, 2008 at 2:21 p.m. (Suggest removal)
I Guess, I agree with many of you. Do not even think of offering Scott anything. Wait and talk with the bank if you really think the City needs more park land. Problem I see if they cannot take care of what the City already owns.
Let a good developer with a strong financial backing buy it and develop it. When the market turns around, they may re-Plat the entire development into lots affordable for the residents which seems to be more and more working/middle class than the wealthy with the ability to buy/build $500,000+ homes.
Yes, it looks like a mess and is unfinished, but was there not a Bond required of Scott and his Development Company in the development agreement to pay a Contractor to finish the development as is in the first place. That is Standard Practice, what happened?
Maybe the Tribune staff can do an investigative article to tell the whole story including following the money trails.
While they are at it, investigate all of the current developments and tell us whom all of the investors are and if they have or hold any Political Office or Relatives working for the City or other Government Agencies.
Oh, where did this $7,500 per acre price come from? What basis is the City using for determining this value? I know in Maple Grove (NW corner of the Twin Cities, developable land was going at a high price of $300,000 per acre 2-years ago, that price has came way down.
My one question remains, what does the City want with this land? If the City really wants this land, sell the idea to the Voters and put a Bond Issues before the Voters this fall. I am sure if you hurry, you could have an issue before the Voters in November. Now, if you do this, how will you pay for it? Is your budget not high enough and have not enough Voters said hold the line on spending?
Posted by Wildbill (anonymous) on August 26, 2008 at 11:20 p.m. (Suggest removal)
I don't think the city really wants the land, but what will
we do with it?
Posted by 57boy (anonymous) on August 26, 2008 at 11:22 p.m. (Suggest removal)
hmmmm.....TIGER HILLS II
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