Bama Bayou project in foreclosure

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.)

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