By Bill O'Brien
ACME -- A foreclosure action is pending against dormant LochenHeath golf and housing development, where work ground to a halt more than a year ago.
A local engineering firm and an excavating company sued LochenHeath Land Co., Arizona-based Pinnacle Development Partners and its financiers to foreclose on the 600-acre plus housing and golf course development for unpaid engineering and construction bills.
A public auction for the property is set for Dec. 16, followed by a four-month redemption period.
LochenHeath includes a private 18-hole golf course and more than 500 housing sites west of U.S. 31 in Acme Township. Acme physician Marc Krakow and Acme residents Jim and Barbara Maitland launched the development in 2001, before Pinnacle took over in 2004.
Pinnacle overhauled the golf course and housing plans before a nationwide downturn in the housing market thwarted sales and slowed development. The golf course, recognized by some golf publications among the top courses in Michigan, closed in early 2008 and about 30 employees lost their jobs.
The Grand Traverse Resort & Spa operated the course in 2008, but it didn't re-open this year and is being maintained by a handful of LochenHeath property owners who also have litigation pending against developers.
Traverse City attorney Norm Droste represents Gourdie-Fraser Inc. and Molon Excavating Inc., two local firms that did engineering and construction at the site and sued for more than $112,000 in unpaid bills.
"They were paid for some of their work, but not all of their work," Droste said. "I think it's wrong for developers to come into our community and steal work from our workers. I'm not going to let that happen."
A spokesman for Pinnacle Development declined comment on the lawsuit but said the firm remains committed to the development.
"We have every intent of going forward with the project through completion," said Michael O'Grady, Pinnacle's chief financial officer.
Droste said there are other liens and a mortgage against the property from lenders that include Wells Fargo bank. But he's confident work eventually will resume.
"It will be re-opened, I'm certain," Droste said. "This is going to prompt that happening sooner than later."
Acme Township officials also want to see the project revived. A planned unit development agreement for the property calls for 507 housing units. Two initial phases covering 220 housing units already have been approved, but only about a dozen homes have been built.
"I would like to think it will -- very much so," township Manager Sharon Vreeland said. "That's a concern."
