Perkins Rowe foreclosure proceedings get into gear

Published Jul 18, 2012 at 3:00 pm (Updated Jul 18, 2012)

KeyBank National Association has filed documents to move forward with its foreclosure of Perkins Rowe, the mixed-use development it largely financed and has been trying to take back from developer Tommy Spinosa for the past three years. The Ohio bank, which led a consortium of seven lenders in the mid-2000s to finance the $170 million project, filed the foreclosure documents last week in U.S. District Court in Baton Rouge. The move comes 11 months after the court cleared the way for KeyBank to proceed with foreclosure. That hasn't happened, however, because of several unresolved legal issues between Spinosa and the bank, one in particular having to do with the facility providing chilled water to the development. In its filing last week, KeyBank's attorney argued that the issues surrounding the dispute over chilled water are independent of the ruling giving KeyBank the right to foreclose. Whether the court will agree remains to be seen, but Judge James Brady has indicated he will rule relatively soon on this matter. All briefs are due by July 31. Should Brady rule in favor of KeyBank, sources familiar with the case say the bank could take over the development before the end of the year. Attorneys for KeyBank declined to comment, and Spinosa's attorney did not return a call before press time. The day-to-day operations of businesses and condominiums within Perkins Rowe are not expected to be affected by the foreclosure proceedings. —Stephanie Riegel