Construction Loan

Oshkosh, WI: (Oct-10-07) A lawsuit was brought against developer Ben Ganther and his partner, Robert Niebauer, alleging that they owed city of Oshkosh about $320,000, stemming from the financial collapse of the apartment complex at 100 N. Main St. The lawsuit stated that the city contributed $2.2 million, or 25 percent of construction costs, through a developer's assistance grant. Ganther defaulted on a $5.9 million construction loan and the city's Board of Review cut the building's assessed value from $6.1 million to $4 million in May. The lawsuit claimed that both Ganther and Niebauer owe the city based on personal guarantees to cover the difference between taxes generated by the property and the amount needed to cover city debt payments on the complex.

In a settlement reached, Ganther will pay the city of Oshkosh $150,000 to settle the lawsuit. Under the agreement, Ganther will pay $10,000 before March 31, 2008 and another $15,000 before Dec. 31, 2008. Each year after that, he will owe $25,000 by Dec. 31, until the settlement is paid off in 2013. Should Ganther not make timely payments, the city would be allowed to reopen the lawsuit. The agreement also ensures that the city will not take other legal action to collect future shortfalls from Ganther. The settlement does not end the lawsuit against his development partner Niebauer. [THE NORTHWESTERN: CONSTRUCTION LOAN]

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Published on Oct-14-07