Sluggish Spanish Fort Town Center defaults on loans

 (SPANISH FORT, Ala.) - A huge development in Baldwin County that didn't pan out as planned now owes tens of millions of dollars to their creditors. The Spanish Fort Town Center, home to Bass Pro Shops, JC Penney and Kohl's was built thanks to Hurricane Katrina funding.
Six years later, the complex has fallen prey to the recession, and the struggling real estate market.
Texas-based company Cypress Equities couldn't make good on their payments to creditors Bank of America, so now a judge has appointed an overseer who will make sure they get back in the black, and continue to develop the empty shopping center."The infrastructure is here for the center to expand," Spanish Fort City Attorney David Conner said.  "There are a lot of buildings that have been constructed that are empty as you can see."
Conner said a "perfect storm" in recent years has caused developers, Cypress Equities, to run more than $80 million behind on their loan payments.
"We had Hurricane Ivan, followed by Hurricane Katrina, you had the downturn in the economy, (and) we also had the oil spill," Conner said.  "One of the large components of this center was going to be the construction of automobile dealerships along the proposed frontage road that would connect up with Highway 13. That frontage road has not been constructed at this point, and so those automobile dealers have not relocated."
That, he said, took away $120 million of potential revenue.  Conner said a court-ordered receiver from Clearwater, Fla. will now take control of the property's assets."
Attorney Samuel Crosby represents the receiver.

Conner saids it is not all bad news as retailers like Bass Pro Shops, JC Penney and Kohl's are still bringing in dollars for the city.
"The city is receiving sales tax now from the stores that are located here," Conner said, "and receiving good money from the center.  Not what was projected, but good money from the center. Everybody has the same goals.  Everybody wants to see the center succeed."Tenants at the Spanish Fort Town Center Apartments have also been notified of the takeover, but management said they will see no change to their leases or rent payments.
"Part of the role of the receiver is subject to court supervision to work out what would be the most viable alternatives working with all the parties to, like I said, make this development exactly what it was intended to be," Crosby said.