Buying Time Against Foreclosure
A bankruptcy filing has delayed a project in South Salem, Marion County. Developer Morford filed protection from creditors claiming shelter under bankruptcy laws just two hours before scheduled start of foreclosure proceedings.
Morford, from Portland, is in charge of PJM Fairview. His attorney Bradley Baker took the help of Chapter 11 to file the petition in Marion County Courthouse. Fairview owed the lenders, OFO Partners more than $13.5 million for a 104-acre property in South Salem.
It postponed the foreclosure but it also meant a big delay in implementation of the project. But Morford has not given up hope to make his dreams come true. He is frantically working to refinance it.
Under the legalities of Chapter 11, PJM Fairview keeps possession of the property but Morford must submit to the court reorganization plans delineating how he plans to meet the demands of the creditors.
On the other side of the fence, OFO Partners, under the guidance of their attorney Brent Summers is sharpening their swords and waiting to ask the court within few days relief from the postponement that has adversely affected them. The aim it to complete the process of foreclosure and satisfy his clients.
Morford had bought the land from Sustainable Fairview Associates in 2006 for about $21 million. He planned something that would be sustainable as well as environment friendly.
It would be located next to Pringle Creek Community – the latter being a green-development coming up on the remaining 32 acres of Fairview. Pringle Creek is not included in Morford’s holding and remains unaffected by plans gone awry with its next-door plot.
Morford’s plans for development envisage a project with mixed facilities. It will stand on more than 240 acres at 2250 Strong Road SE.
There would be 816 single family home blocs on the south. On the north there would be multi-family homes, space for offices and shops as well as a 5-acre park. A site plan has also been drawn up for a school.
Gordon Root, the owner of another creditor does not think that these are anything but teething troubles and will not derail Morford’s project.
Fairview owes Root Holdings more than $6 million. It too has started foreclosure proceedings for 145 acres. He is however of the opinion that for the welfare of all, every one should come forward to give Morford’s spectacular dream a big push.
