Sterling Bank filed a lawsuit against the City of Natchitoches on Aug. 29 regarding the approval to demolish the SummerTree Apartments, located at 312 Second Street, at the Aug. 26 City Council meeting.
The bank stated in its petition for judicial review and suspensive appeal of demolition order that after inspection an architect advised the bank that the property was not in dilapidated or dangerous condition, but simply in a state typical of any construction work in progress.
The property has had no work done on the renovation project in about 2 years. A representative from Hopeville Partners LP in Georgia was present to inform the council that a new contractor after the original developer for the project defaulted on the loan. The over $3 million in tax credits attained to fund this project will be lost by Dec. 31, 2020.
The bank also claimed that the City Council’s decision to demolish the property was “clearly erroneous and contrary to its own inspector’s opinion that the deficiencies in the structure could be cured through securing or repairing the structure, and further contrary to the opinion of Sterling Bank’s experts.”
While the representative asked the Council to give them more time, Mayor Lee Posey said the community has been very tolerant to try and let this project happen, but it hasn’t.