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Wednesday, May 27, 2009

Bank seeks $8.5 million from Smith Mountain Lake developer

Wachovia wants control of a restaurant, inn and marina on Smith Mountain Lake.

BEDFORD -- Trouble continues to mount for Smith Mountain Lake Partners, developers of Sunset Cay, a sinking mixed-use project in Moneta.

Another lender, Wachovia Bank, filed a complaint in Lynchburg's U.S. District Court seeking more than $8.5 million from the developer, Jim Fields. The lawsuit alleges Fields "contracted with a salvage company to liquidate certain assets" located at the property, which conflicts with the lender's security agreement.

Wachovia is seeking possession and control of Harrison's Restaurant, the Inn at Sunset Cay and the Marina at Sunset Cay, which all are located at the former Campers Paradise site east of Hales Ford Bridge.

Sunset Cay originated on a larger parcel about three miles away on Hendricks Store Road. A judgment has been reached in Bedford County Circuit Court, awarding $6.1 million plus interest to StellarOne bank, which filed an initial claim against the development. Nine luxury homes and a commercial structure are complete and unoccupied on that site.

Fields, who with his wife owns the majority of the shares in the limited liability corporation, is scheduled to appear in Bedford County General District Court next month on four charges of felony embezzlement. He is accused of not paying state sales tax and employee-withholding taxes at Harrison's Restaurant at Sunset Cay.

Neither Fields nor his attorney Darren Delafield returned phone messages left for them Tuesday.

At one time Fields had grand plans for the Hendricks Store Road site, including more than 1,500 homes, a golf course, restaurants and shopping, but those plans have fizzled out. The first nine homes -- with prices starting at $450,000 -- have sat empty for more than a year. An option to purchase 400 acres of farmland to expand the project was not executed. Exterior construction of Abercrombie Square, the anchor commercial building on Hendricks Store Road, appears complete but unoccupied.

It is unclear whether Smith Mountain Lake Partners will retain control of the Hendricks Store Road properties. Michael Whitlow, an attorney for StellarOne, did not return a phone call Tuesday.

In another related matter, a bankruptcy filing by Smith Mountain Lake Partners has been dismissed.

Additional details were not available Tuesday.

News researcher Belinda Harris contributed to this story.

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