ORANGE BEACH, Ala. (AP) - A south Alabama bank has foreclosed on Bama Bayou, a partially built entertainment district in Orange Beach.
Vision Bank had loaned Bama Bayou's developers $21 million, but foreclosed on nearly the entire property late last month. Records show the bank then bought up nearly all the 144 acres at auction.
The bank at auction paid about $10.3 million for the property and
was the only bidder.
In lawsuits filed in Mobile County Circuit Court, Vision Bank claimed that the project's developers - a partnership between Orange Beach-based Joe Raley Builders, Mobile real estate conglomerate The Mitchell Company and individual investors - defaulted on the $21 million worth of loans.
The developers claim the bank withheld promised funding, which doomed the project's completion.
(Copyright 2009 by The Associated Press. All Rights Reserved.)