The Commerce City Council appears to be reluctant to help a local bank turn virtually worthless land it thought was collateral into lots that can be developed — and sold.
The property — 10 former lots comprising 15.9 acres — is in the front section of Oconee Point Subdivision, now owned by Northeast Georgia Bank.
The bank acquired the note on the subdivision after Freedom Bank failed and Northeast Georgia Bank acquired the assets of Freedom from the Federal Deposit Insurance Corporation (FDIC). It subsequently foreclosed on developer Daniel Wilson in January 2009 only to find itself with worthless collateral. Except for the “greenspace,” the subdivision is built out, according to David Zellner, Commerce’s director of planning and development.
With 10 Oconee Pointe lots converted to greenspace that is now virtually worthless, Northeast Georgia Bank would like to return that 15.9 acres to 10 developable lots in exchange for letting the city annex another 15.9 acres as substitute greenspace.
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