Touted as the largest foreclosure case in Teton County, Texas, a commercial lot has been placed on bank foreclosure list by Wells Fargo Bank for failure of its developer, the Tatanka Hotel Development Partners to pay its $13.5 million loan with the bank.
The 3.26-acre commercial property is scheduled for foreclosure auction on the county courthouse on August 27.
According to Frank Majorie, a lawyer representing Tatanka Hotel Development and its principals Antonio Ortega and James Reinert, the developers are trying to prevent the inclusion of the commercial property on bank foreclosure list. The forced sale of the property, located east of Teton Village’s Tram Tower Townhouses, is a way to repay the loan owned by developers to Wells Fargo.
Majorie said that the developers are negotiating with Wells Fargo to try to remove the property from bank foreclosure list and avoid the forced sale. He said that the developers were disappointed that Wells Fargo has taken the first step towards foreclosure. However, they are confident that all parties could work out an agreement that will not involve forcible selling of the property for loan repayment.
The scheduled sale would not just affect the Tatanka partners. According to Jerry Blann, president of the Jackson Hole Mountain Resort, Tatanka partners owe his company as much as $6 million loan. A subordinate agreement goes with the loan which means the payment claims of Blann’s company is only secondary to Wells Fargo.
If Wells Fargo forecloses on the property on the basis of its loan, the Jackson Hole may never recover the money Tatanka owes. Blann said that the amount of the winning bid for the foreclosed property would determine if his company would be paid or not. If the bid is less than the mortgage loan of about $14 million, the Jackson Hole’s second mortgage will remain unpaid.
According to Cheryl Chidester, county’s civil process supervisor, the starting bid for the Tatanka property is listed at around $14 million. She said that the starting bid is bigger than the loan amount because of interest, which amounted to $6,750 per day, and other fees.
Majorie said that his clients are confident that they would be able to develop the commercial property and are negotiating with Wells Fargo to extend the loan and remove the land from bank foreclosure list.
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