Receiver Has Hands Full with Legacy
by March 24, 2008 12:00 am 193 views
Court-appointed foreclosure receiver Wayne Swofford has his work cut out at the 37-condo Legacy Building in downtown Fayetteville. Legacy National Bank of Springdale foreclosed on two loans for the property totaling $18.1 million on Jan. 2.
According to his report on the property filed March 13, Swofford estimates he needs a minimum of $10,000 per month to keep the building operational, three units are currently occupied by tenants paying neither rent nor property owners association dues and that developer Brandon Barber owes his company Lynnkohn LLC more than $92,000 in POA dues for the unsold condos.
Among other problems with the property, Swofford also noted the electrical system needs work, and that Barber has not fulfilled his commitment with the City of Fayetteville to replace a trash compactor removed during construction in exchange for a 20-foot “no-build” easement around the Legacy. Swofford estimates adding the compactor will cost $50,000 to $70,000. He found that all the units run off a single meter and the building is “infamous” for running through light bulbs because the electrical load was designed for 100 percent occupancy.
Swofford found no contract documenting the terms of East Meets West Spa & Salon occupying unit 702, an arrangement Barber made with owner Helena Gadison after he failed to meet his deadlines to complete her building at the Bellafont.
Gadison, who sued Barber on Nov. 20 over the Bellafont fiasco, countered Swofford’s rent request of $1,000 per month for the 2,800-SF, two-story condo with an offer to pay $700 monthly until she opens her flagship location this fall at The Shoppes at the Bluff.
The unfinished retail space on the second floor has recently been occupied by an art dealership for free and Mike Sitton has been living in unit 302 because the fifth-floor condo he purchased last summer has still not been finished out.
According to the Lynnkohn ledger filed by Swofford, Barber’s wife Keri’s credit card was a source of financing several finishing touches before the building opened last May just a month after Barber secured a $2.7 million loan from LNB to complete the project.
Keri Barber put $8,831 on her card, including $133 for metallic gold pillows and $1,540 for a white leather chair.
According to court filings, Patrick McDaniel of DeQueen is representing Keri Barber and Legacy partners Seth and Laura Kafka. K. Vaughn Knight of Fayetteville is representing Brandon Barber and Lynnkohn.