The Hadley Valley Train Wreck

I feel train wreck is an apt description. The text below is from the blogger at which seems to always be down right now.  I was asked for comment and all I could say is that this was a train wreck and I hope some people learned their lessons.  One way or another I think that tax payer is going to get a raw deal here.

Rochester developers in the northeast corner in and around 48th Street are so intertwined that it’s difficult to follow what is going on.

If an attempt was made to sort things out face-to-face with the developers it would be even less successful.

This is being noted because the groups holding forth in this section of town are costing the city money. Five developers have not paid their 2010 assessment for the Hadley Valley Trunk Sanitary Sewer, a situation that prompted the city council to approve collection of assessments. But costs to the city go beyond just this issue.

A scorecard will be needed to follow this situation.

If there is any point of this exercise it’s that residents need to understand how complicated the business dealings of developers are in Rochester.

The five who will be assessed as a result of council action are Stonehedge Land Development LLC, Paks Properties IV LLC, Oak Crest Enterprises, Cassidy Land Development LLC, and Stonehedge Townhouses LLC.

Two developments which are up-to-date on city assessments and located in this area are also going to be noted: Morris Hills managed by Richard Argue and Hadley Creek are now owned by Minnwest Bank. Terry Babcock Builders, 1955 Hadley Creek Dr., is not part of the group to be assessed but this company is noted here because of its location, close to the companies assessed, and its officers.

Morris Hills Land Developent LLC : The group manager is Richard Argue. Address is PO Box 8368 Rochester. Richard and son David manage Terry Babcock Builders, 1955 Hadley Creek Drive. Twenty-six foreclosed properties in this development were sold in a sheriff’s sale on March 3, 2010.

Stonehedge Land Development LLC and Stonehedge Townhomes LLC: Sherman Stofflet is manager for both LLCs. The address is the same as Morris Hills Land Development LLC. Richard Argue also heads Stonehedge Realty, also not one of the businesses that was assessed, but it is located at 1925 48th St. NE.

PAKS Properties IV LLC: Manager is Richard Argue. Address is 5 Kurth’s Bay Court NE, Zumbro Falls 55991.This project .is also called the Hadley Development Connection.

Cassidy Land Development LLC: Managed by David Argue, son of Richard. Fat her and son are also officers of Terry Babcock Builders at 1955 Hadley Creek Drive which in the same area as the rest of the assessed developers. However, the construction company was not assessed.

Oak Crest Enterprises: Group manager is William Harris of 6005 Woodridge Lane in Rochester. The group was going to develop a parcel near Stonehedge, receiving approval of the general development plan in 2004. The city put a condition on the proposal that no development could start before the Hadley Valley Trunk Sewer Line, which turned out to be done in 2007. Developers have 10 years to pay the assessments. If the annual bill isn’t paid by Nov. 1, the city assesses the developer. Taxes on this development are up-to-date, according to property records. Since 2004 no further development activities have taken place.

Minnwest Bank: This bank foreclosed on 42 parcels belonging to Hadley Valley Partners, all located in the same 48th St. NE area. The bank is now developing some of these parcels. The former manager of Hadley Valley Partners was Richard Argue, also using the 5 Karth’s Bay Court NE Zumbro Falls address. Hadley Valley Partners is not on the assessment list. Minnwest is one of several defendants in a civil lawsuit against the original developer for non-payment to a contractor.

And when all is said done the Kurth’s Bay address noted above has been foreclosed on, according to Olmsted County property records. A Sante Fe, New Mexico, firm called TMST Home Loans Inc. foreclosed. But this same firm is working its way out of bankruptcy.

Blogger’s Speculation: The City of Rochester is not going to get its money. The above is why builders and developers need to undergo scrutiny about plans being proposed.

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