News and Tribune

March 6, 2014

Bidders pass on blighted Clarksville property

Bank to take possession of former Peddler's Mall property within 60 days

By MATT KOESTERS
matt.koesters@newsandtribune.com

JEFFERSONVILLE — The former Peddler’s Mall property at 900 Eastern Blvd. in Clarksville is not yet in the hands of a private developer, but at least one company is interested.

The opening bid for the property at a U.S. Marshals Service sale on Thursday at the Clark County Government Building was $3.2 million, placed by the holder of the mortgage on the property, Green Mountain Financial Fund LLC. The half-dozen bidders that had gathered at the auction declined to top it.

“It was expected,” said Clarksville Redevelopment Director Nick Lawrence. “We anticipated that to occur, and fully believe that [Green Mountain] will be willing to put the property up for sale and move it relatively quickly. Hopefully, we’ll get the property rehabbed and taken care of over there by whoever the purchaser and developer ends up being.”

Lawrence said he expects Green Mountain to sell the property to a developer that will clean it up and develop it similarly to how API developed the property across the street, in front of the former Value City building.

It’s likely that API itself will be involved in the development of 900 Eastern Blvd., according to Eric Goodman, vice president of development with API. Goodman said he believes Green Mountain is interested in trying to recoup its losses after the property’s previous owner, Lori Rappaport LaCroix, defaulted on a $2.06 million mortgage against the property.

“We’d be interested in negotiating with them,” Goodman said.

Goodman said he didn’t foresee the property being rezoned, and that if API was to take possession of the property, the development would be similar to what it’s done at the former Value City property. Goodman added that the building that currently sits on the structure would likely be rehabilitated, in favor of demolition and new construction.

Green Mountain will likely take possession of the property within 60 days, whereupon it will be free to negotiate the sale of the property to a third party.

A call placed to a representative of Green Mountain was not returned by press time.