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08/05/2007
Golf course faces lawsuit; work goes on
The LochenHeath golf and residential complex in Acme. ACME — Developers of LochenHeath golf and residential complex face a federal lawsuit over property deals, and recently squared away more than $1 million in construction liens, but said work continues at their Acme Township site. Four Oakland County residents are suing LochenHeath Properties LLC and its investment partners in a 19-count complaint in U.S. District Court that alleges breach of contract, fraud and several other state and federal law violations. Their suit seeks more than $5 million in damages from more than a dozen individuals and entities tied to the project, and alleges developers misled the downstate residents over their properties' resale value, details over club memberships and the amount of property taxes attached to lots in the project. "There were a lot of promises made that they're not keeping,” said Audra Arndt, the plaintiffs' attorney. Developer John Lang of Pinnacle Development Group in Scottsdale, Ariz., which joined the project in 2004, dismissed the suit as "trash.” Work on the upscale housing development and 18-hole golf course began in 2001 on a former cherry orchard. Three years ago the project doubled to include more than 600 acres with plans for just over 500 housing units. The property is located west of U.S. 31 north of Dock Road. Lang described the plaintiffs as "real estate professionals” who've "overextended themselves” in property holdings amid a dour housing market. "I think it's an unfortunate way to do business, but we will not be pushed around by frivolous claims that are ridiculous,” said Lang. Several lawsuit counts involve allegations of criminal activity by project developers, but Arndt said the plaintiffs have not approached state or federal law enforcement agencies with specific allegations. Meanwhile, two local contractors — Molon Excavating Inc. and Elmer's Crane and Dozer Inc. — last month filed liens against LochenHeath totaling nearly $1.4 million for non-payment of bills. Molon released the lien July 18 after its bill was paid, and the Elmer's lien was lifted last week, according to Grand Traverse County property records. Those liens were among a half-dozen such claims filed by area contractors during the past two years for work at LochenHeath, though all the liens were released after payments were made. "They've dealt with their issues and paid us,” said Mike Walton, a partner at Molon. He said company crews have returned to the project "in full force” and described LochenHeath as "a good customer.” Work continues on two artificial lakes in the project, reconstruction of two golf holes, and building of 40-plus cottage-style homes in the $600,000 to $750,000 price range. Lang acknowledged LochenHeath home sales are slower than he'd hoped, but said the project is hampered by a nationwide housing slump that's hurt vacation properties. "Nobody anticipated the markets to drop off like they did,” Lang said
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