Main Source Bank, HCEDC in dispute
Main Source Bank recently filed suit against the Harrison County Economic Development Corp. regarding a dispute dealing with land in the new construction area of Pacer Court and Federal Drive, according to Michael Tigue of Middleton Reutlinger, the attorney for the HCEDC.
The nearly one-mile length of public roadway connects Pacer Court (which is the road on the north side of Walmart leading to Cracker Barrel, O’Charley’s and Super 8 Motel) to Federal Drive (near the Northfield medical complex to the south of Walmart) and heads west to connect to Corydon-Ramsey Road.
One of the owners of property along the roadway was developer Robert Lynn, who since lost the land to Main Source Bank, Tigue said.
When Lynn lost his land and Main Source Bank took it over, the bank agreed, according to Tigue, to pay the money owed to HCEDC.
‘It’s my understanding that they confirmed that at closing,’ Tigue said.
Now, however, Main Source is taking the position that they aren’t paying, he said, which precipitated the lawsuit.
The road extension project through the undeveloped land was made possible with a county government-approved loan of $1.5 million to the HCEDC for the project in 2010, and that money will be paid back by the property owners ‘ a group that includes real estate developer Edsel Byrd, developer John Hall, Corydon lawyer Pat Thompson, the Chamber of Commerce of Harrison County and Lynn, now Main Source Bank ‘ in a 10-year agreement.
The development groups agreed to pay back the HCEDC for the amount it cost each group for its road frontage.
The Byrd group has the most land along the road, followed by Main Source Bank and the Chamber of Commerce of Harrison County.
Lisa Long, president of the Chamber, said the Chamber has already paid its debt ($382,000) to the HCEDC in full and ‘believe that we signed an agreement and were ethically and legally bound by that agreement no matter what the other property owners/lien holders choose to do.’
The Byrd group has also paid a portion ($57,000) of what it owes.
The road project falls in line with others in the region where the roads and utilities are built first then development is directed to it, instead of waiting for the development to come to the area before building around it, HCEDC director Darrell Voelker said.
Main Source Bank does not comment on matters of litigation, according to attorney Melinda Sunderland of Morgan & Pottinger.