Moose Crossing subdivision headed for sheriff's sale

Three years after the developers of the Moose Crossing subdivision north of Columbia Falls were found in default of their loan, the partially completed site will be sold at sheriff’s auction on July 11.

Flathead County District Court Judge Ted Lympus granted a summary judgment to Whitefish Credit Union on June 11, 2010, after the developers failed to pay on three loans totaling more than $1 million. Including interest and fees, the developers owed $1,195,661 at the time of the ruling.

The Moose Crossing developers originally included Montana Land Concepts, Luke, Wayne and William Bengtson, of West Glacier, Greg Larson, of Somers, James DesJardins, of Troy, and Eddie’s Development Corp., of Butte.

Judge Lympus ordered the 15-lot subdivision sold at sheriff’s auction on June 23, 2010. The sale was delayed in order to settle a construction lien with LBC Trucking and Excavating.

The 15-lot Moose Crossing subdivision is located on the North Fork Road next door to the city’s Cedar Creek subdivision. Internal roads have been built, but a holding tank for a fire suppression system ordered by Columbia Falls fire chief Rick Hagen was never built, city manager Susan Nicosia told the Columbia Falls City Council at their June 17 meeting.

The developers’ original plan was to store water in a pond, but the pond they built leaked and wouldn’t hold water. Nicosia noted that a well casing is in place to serve the holding tank, but no electric power has been run to the well.

The developers’ subdivision improvement agreement expired May 1, and their letter of credit will expire July 1, Nicosia said. The city would prefer to work things out than keep the bond and complete the work themselves, she said.

She told the council she was hoping negotiations could continue through Whitefish Credit Union’s special asset team.