GENEVA – A foreclosure action against the 120-acre Tanna Farms Golf Club, owned by Geneva developer Kent Shodeen, is headed for a settlement.
Attorney Ryan Lawlor, representing Bank of America, told Kane County Judge Thomas Mueller on Friday that the two sides were working on a settlement agreement and likely will be able to discharge the receivership at the next court date, Nov. 5.
Bank of America sued ShoDeen Construction LLC and other Shodeen corporate entities in March, alleging default of a $3.6 million loan borrowed against the golf course in 2009, records show.
ShoDeen built Tanna Farms, 39W804 Hughes Road, Blackberry Township, in 2001. Mueller had ordered that a receiver would run the Tanna Farms golf course while the foreclosure is pending.
The bank sued ShoDeen in a foreclosure action on other properties, also in March, federal court records show, seeking nearly $40 million. But Dave Patzelt, president of construction for ShoDeen Construction, said all will be settled soon.
"There was a disagreement and a dispute, and a settlement agreement has been reached and that is where it's at," Patzelt said. "The federal case (and) the Kane County case are all part of the same thing, and both parties are in agreement in concept and trying to get the paperwork finalized."
Patzelt said the bank did not sue because ShoDeen was behind in loans taken out against various properties, though a filing in U.S. District Court for the Northern District in April includes a copy of Jan. 17 demand letter for immediate payment of $47.3 million.
The latest federal filing also shows a settlement conference set for Nov. 13.
Attorneys for Bank of America would not comment.
Patzelt maintained the suit was nothing more than a disagreement.
"It had nothing to do with not paying the payments," Patzelt said. "This was not your traditional case where somebody is just not paying."
Patzelt said the settlement between ShoDeen and Bank of America will not be made public.
"When both parties agree to settle out of court, it's a private settlement," he said.
