Although the foreclosure sale by Minnwest Banking Group of 150 acres in RTC was postponed to Aug. 31 to allow it to work with the city on various issues, those issues have yet to be worked out.
According to Interim City Administrator Heidi Nelson, the land to be auctioned includes wetlands and land set aside in the master development agreement for parks, street dedications and two parcels on which the city has an option.
The bank plans to bid on the property once owned by Bruce Nedegaard, who died in November 2006, and sell it, said Russ Bushman, Minnwest Banking Group chief credit officer.
That means the schedule/postpone cycle should end by end of August. The bank will bid its judgment, then shop the property as owner, rather than shopping it as a pre-foreclosure package.
There still may be a junior lienholder redemption -- but it would have to be at the mortgage value of $35 million - unless the bank for some inexplicable reason does not bid the full amount -- making redemption very unlikely. So whoever buys from the bank should get title and a chance at making a silk purse from the sow's ear. The Rehbein lien for site prep is the big item that might be run under by this step. They are the biggest junior lien, as I understand it. For millions.