Foreclosure Hits Bama Bayou

Orange Beach Bama Bayou The unfinished entertainment district in Orange Beach was foreclosed then bought by the same bank but developers claim it's the bank that doomed the project.

by Associated Press

Published: Sun, April 12, 2009 - 5:31 pm CST Last Updated: Sun, April 12, 2009 - 5:46 pm CST

ORANGE BEACH, Ala. (AP) - A south Alabama bank has foreclosed on
Bama Bayou, a partially built entertainment district in Orange
Beach.
Vision Bank had loaned Bama Bayou's developers $21 million, but
foreclosed on nearly the entire property late last month. Records
show the bank then bought up nearly all the 144 acres at auction.
The bank at auction paid about $10.3 million for the property and
was the only bidder.
In lawsuits filed in Mobile County Circuit Court, Vision Bank
claimed that the project's developers - a partnership between
Orange Beach-based Joe Raley Builders, Mobile real estate
conglomerate The Mitchell Company and individual investors -
defaulted on the $21 million worth of loans.
The developers claim the bank withheld promised funding, which
doomed the project's completion.

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Violator Says:

Sun, Apr 12, 2009 at 7:57 pm

This sounds like the Mobile Bay project that was started in Fowl River called the town of Salt Aire. Regions has foreclosed on that project too. I live near there and I knew this was doomed and destined to fail. The investors were comparing it to Seaside,Florida. It was silly to think that a newly proposed town on the dirty, polluted, and nasty Mobile Bay would ever be a Seaside,Florida. Where they have white sandy beaches, Gulf views, Victorian homes and cobble streets.

Sunndew Says:

Sun, Apr 12, 2009 at 7:11 pm

Yes BamaBob. I don’t know about Regions withholding funds but I do know that Raley Builders and Mitchell Co. have left owing a lot of money to a lot of local companies because of this.

BamaBob Says:

Sun, Apr 12, 2009 at 7:03 pm

Is this that big deal planned along the beach expressway?

Wait4Me Says:

Sun, Apr 12, 2009 at 6:37 pm

Seems like someone knew there was money to be made, foreclose then re-buy at a discount. Now they get the property at a low price and the ability to write off the losses on their initial investment. These banks sure know how to work the system. I wonder if they received bailout money, did the taxpayers fund this?