Property developer Steve Bryan apparently tried to pull a switcharoo on the Reservoir area. Mr. Bryan bought the site where Rapids on the Reservoir was once located and announced he was going to construct Mandalay, a new Xanadu for the Rez where dreams would be made and fantasies realized, a King Edward of sorts by the water. The Mississippi Business Journal reported last year:
"The Bryan Company plans to use the site for Mandalay, a $35-million condominium development. In addition to the 360-unit complex consisting of four-story structures served by elevators, amenities will include a lake, fitness center, jogging track, tennis courts and business center. It is also envisioned as mixed-use, with room for office space, shops and eateries..." Article
Unfortunately for those living around the Reservoir, Mr. Bryan is attempting to replace his pie in the sky project with rental apartments funded by HUD. Nearby homeowners are not too happy about it as they packed a meeting held on the proposed project this week. WLBT reported "The Pearl River Valley Water Supply District sent the Federation of Reservoir Homeowners information stating the condos would now be a 362 multi-family rental property." Over 300 people showed up to protest Bryan's HUD project as its no secret that apartment complexes tend to bring more crime to an area.
Apparently Mr. Bryan has seen some other controversy in 2009. The Shreveport Times reported yesterday:
"Two Shreveport apartment complexes must pay to make themselves accessible to disabled people as part of the settlement of a federal anti-discrimination lawsuit.
Island Park Apartments and Reflections at Island Park, both off Clyde Fant Memorial Parkway, are among 11 multifamily housing complexes in Louisiana, Texas, Alabama and Tennessee named in the petition settled recently with the U.S. Justice Department....
And Steve Bryan and Bryan Construction Co. must pay a civil penalty of $12,000 to vindicate the public interest, according to the settlement..." Article
Mr. Bryan's recent troubles do not end in Shreveport. Compass Bank filed suit on August 27, 2009 against Mr. Bryan in federal court. Compass claimed it loaned Mr. Bryan $11,437,500 on December 19, 2007, to construct a 120-unit apartment complex in Lafayette, La. Compass claims the defendants owe $12,226,368 and are in default. Compass sought permission from the Court to seize the apartment complex. Copy of lawsuit. The Court agreed with Compass and issued a writ the next day seizing the apartment complex from Mr. Bryan. Copy of writ. No response or answer has yet been filed by Mr. Bryan.
Treuhold Capital Group also filed suit against Mr. Bryan on June 24, 2009 in Baldwin County, Alabama, seeking a judgment of $3,317,130 against the Mississippi developer. Treuhold claims First Gulf Bank loaned Mr. Bryan $3,575,000 on September 26, 2005. The lawsuit states Mr. Bryan defaulted on the note and Truehold foreclosed on the property, a planned-unit development in Sunset Bay, Baldwin County. Truehold was the highest bidder at $541,500 on the property and took possession. The plaintiff sought redress from Bryan for the balance listed above. Copy of suit. Mr. Bryan had the suit removed to federal court. Bryan filed an answer in August in which he admitted to most of the allegations, including the foreclosure. The two sides apparently settled the case as they filed a motion to dismiss without prejudice and the Court granted the motion on August 27, 2009.
Then there is Memphis. The Commercial Appeal reported on July 8, 2009:
"The Horizon, a troubled Downtown residential project, sold in a foreclosure auction for $17,479,000 a few minutes past noon Tuesday on the steps of the Shelby County Courthouse....
The Bryan Co., a Ridgeland, Miss.-based developer, and Riverside Bluffs LLC had defaulted on a $58.6 million loan from the bank. Along with Capital One, Trustmark National Bank, US Bank and Bank of America were involved in project financing....
Two years ago, the developer broke ground on the 155-unit first phase of The Horizon, which was positioned as an elite condo project. Several months ago, Downtown development officials gave approval for developer Steve Bryan to convert from condos to rental apartments when the project failed to generate substantial interest from buyers...." Article
If forced to speculate, one would conclude with several foreclosures and a federal action taken against him in the last six months, Mr. Bryan is probably scrambling to save his investment in the property. Attempting to use HUD is probably a life-preserver at this point for his ambition. Unfortunately for the Reservoir, his life preserver will sink everyone else around him, showing self-preservation is indeed the strongest instinct.
23 comments:
Did the district approve the change or is it still under advisement?
Additionally, the district's board members are not elected, are they?
Was he at the meeting defending this proposal? Section 8 vouchers at the Rez?
My son gets irate every time we pass the old Rapids site. For a little more than the price of two admissions a season's pass would get a kid in for the summer. It was a great bargain. Now we may get Section 8 housing next to the largest soccer field complex in central MS.
The Ice Park on Lakeland has a "For Sale or Lease" sign on it again too. A perceptive 10-year-old I know thinks they are deliberately trying to get rid of everything in or around Jackson that kids like. Trying to attract young couples with children to an area with high crime, terrible public schools, and low-paying jobs isn't made any easier by having very little for kids to do.
How would HUD even approve something built in a planned Reservoir overflow area?
Anon@3:28 pm said,
For a little more than the price of two admissions a season's pass would get a kid in for the summer. It was a great bargain.
Apparently so, Anonymous. So great a bargain, in fact, that it wasn't sustainable financially. Same with the Ice Park.
So from the post about the meeting, and the comments, I guess folks don't believe a private property owner has the freedom to do whatever he or she pleases with the property? Instead, government can stop a development, even if it provides the prospect of the highest return for the owner?
Wow. Maybe Socialism is coming to Mississippi, after all.
4:12 If you consider this socialism, then Mayor Mary Hawkins Butler should be considered as the modern day Friedrich Engels.
HUD funded housing does not equal Section 8 housing. The Bryan proposal will not entertain Section 8 renters, nor does the fact that it is a "HUD" property mean that it will do so.
This is a very esoteric area of government funding for projects, and the two are unrelated in this instance.
The project has been approved by the Board already.
There is no section 8 housing at issue here. There are different types of HUD loans.
NOW what happened at chatham village was this: The proposed complex was approved with the condition on no section 8. The owners went under and Prudential bought the property. Prudential then decided to accept Section 8, and crime in NE Jackson skyrocketed.
Which is what Reservoir residents fear: an apartment complex, regardless of funding, then comes the section 8 down the road for a guaranteed check from the government.
My parents live on Old Fannin Road and are opposed to the apartment complexes.
People rent for different reasons and one of those reasons (amongst many) are because some people are dirt bags and bums and are never going to be competent enough to balance a checkbook--let alone make a mortgage payment.
I'm all for free markets and free minds but if an overwhelming majority of the people were lied to or misled then Steve Bryan needs to sale his property to someone who is "big" enough to honor their promises.
If people are concerned about Section 8 and HUD it leads me to believe the issue at hand is whether or not minorities will be moving into predominantly white neighborhoods in Rankin County.
With all the zoning nightmares, starter homes and vacant stores along Old Fannin Road and surrounding areas, Rankin County residents (including my parents) are going to see the demographics in these neighborhoods change drastically over the next 10 years.
Don't believe me--just ask Gene McGee
It's so easy to say, "I can't personally afford to buy this property but i MUST & WILL have a say in what will be built there". The residents of Rankin County want the dream of living in Eden, but is this the reality? Is this not the same county that recently was so against the 2 children homes being built?
I can see folks concern, but still, I'd hate to buy a property and feel that my free market friends would not allow me the freedom to develop it any way I choose. Then again, I don't make loose promises and projections to those helping to pave my way based on real or per/con/de-ceived fanatsies. The con game thrives these days. Tough issue, I suppose, to be consistant with "no interference" philosophy or run to big brother to 'regulate'. What to doooooo, what to doooooo....
I don't think it's socialism to try and protect your own property values. We all know apartments,especially HUD, which usually lead to Section 8, will bring in a different type of resident, black, white, all races (that's not the issue), where the safety of all comes into play. Yes, there are good, decent people who will also live there, but why, if I own a house in say, Oak Grove, do I have no say in how I'd like to try and protect the area my children will grow up in? When I think of all the kids at the soccer fields there, and the possibilities of all the registered sex offenders who WILL eventually end up at such a complex, I become ill. Just think of all the roaming pre-teens and teenagers who will be all over the place.
This argument is so GD stupid. Bryan lied, tried a "bait and switch", got caught, and is trying to justify. show mw ONE apartment complex anywhere in the metro area that has INCREASED property values, or even increased in value itself. I have no dog in this hunt except to say to those opposing: stick to your guns!
Leave it to Jimmy Craig. Jim, if someone proposed to put 360 new HUD apartments -- as Kingfish notes there are NO GUARANTEES that they will not one day go Sec8 -- on the edge of Belhaven or Fondren and out right next to your place in Flora you can be certain that the uproar would be substantial. So, are you saying, that you would tell all your fellow "progressives" in Fondren or Belhaven that they have to roll over an accept the apartments because that is the direction in which the private property owner wishes to proceed?
Not surprised to see that you are still a member of the 'cake-and-eat-it-too' crowd.
Section 8 and HUD were never designed to do anything but destroy middle class property values and community cohesiveness. If they can't afford to live somewhere WITHOUT government funds they SHOULDN'T LIVE THERE! '.'
HUD and section 8 are HARDLY 'free market' capitalism. Only a dumb progressive would argue they were. If an apartment builder can't afford to maintain the property without government subsidies perhaps they should go out of business!
Now, if Jim Craig can name ONE instance where section 8 didn't increase local crime rates within 5 years of being instigated I'd love to hear it.
Let's start with YOUR neighborhood Jim Craig! You first!!!!
Steve Bryan's companies bankruptcies are going to be some of the most complicated to hit the court system.....and if you think you might want to own something he and or his companies constructed...think again. He cuts so many corners damn things should be round.
How so? Bryan is on the Mandalay papers as an LLC according to SOS website, a Binford Williams is the member/owner of the LLC.
So, essentially, the Bob Anthony parkway will be book-ended by a trailer park on one side and projects on the other? Meh. No worries. Harbor Walk will save the d...oh, wait...nevermind.
The Horizon condo project in Memphis was foreclosed by Capital One. Bryan's companies are in bankruptcy, and foreclosures have either already taken place or will be occurring as stay motions are lifted. To build the apartment complex, you have to go to the lender of last resort......HUD (a/k/a John Q. Taxpayer)
http://www.hud.gov/offices/hsg/mfh/progdesc/rentcoophsg221d3n4.cfm
For 12:57 - so HUD will lend to someone who can't get a loan from reasonably cautious investors who would worry about his history of insolvency?
@ 1:28...that was my question: what lender would give money to a guy who is in bankruptcy and being sued?
HUD insures most of the nice apartment properties in Mississippi and almost all of the properties in Rankin County. The underwriting standards for a HUD 221(d)4 loan are much more extensive than any other financing instrument available. I'm positive that HUD has not issued a Firm Commitment for the project and is only in the review stage.
Looks like the committee is recommending to the board that this project be built as pitched, as high end condos, not apartments. The board meets thursday to decide the fate. Rankin bd of supervisors weighed in as well, siding with local homeowners.
7:53 is exactly correct. HUD is not a "lender of last resort", as another commenter stated.
Multi-family housing is financed at a low rate by HUD regardless of whether or not the applicant has good or bad credit. It is simply another option available to a developer, and one that comes with the most strict underwriting prior to obtaining the loan, as well as insanely strict project management guidelines during construction.
Many readers equate the HUD 221(d)(4) with Section 8 housing, and they have nothing to do with each other. Different programs entirely.
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