N. Manatee development faces foreclosure

MANATEE — A national homebuilder faces the prospect of losing an approved but stalled housing project in northern Manatee County to foreclosure.

AmTrust Bank is suing to foreclose on 642 acres at the southwest corner of Interstate 75 and Buckeye Road, claiming North Manatee LLC defaulted on a $24 million loan to develop it, court records show.

North Manatee is a subsidiary of K. Hovnanian Windward Homes LLC, which also is named as a defendant in the suit.

The homebuilder planned to build a residential project, initially called Stone Dam Preserve but later changed to SouthBay, on the site. The county approved preliminary plans for 791 single-family homes in 2005, but there are no visible signs of any development activity.

The bank’s suit, filed Tuesday in Manatee County Circuit Court, contends the defendants defaulted on the 2005 loan by failing to begin construction and missing interest payments since Dec. 1, 2008.

AmTrust says it’s owed nearly $12.2 million in principal, plus unspecified interest, late charges and other fees.

Calls to K. Hovnanian’s Tampa office were not returned Friday.

SouthBay is the second proposed development along Buckeye Road to face foreclosure as a result of the weak housing market. Orion Bank sued earlier this year to foreclose on Arbor Park, a residential and commercial project planned at the northwest corner of U.S. 301 and Buckeye Road. The suit is pending, court records show.

Duane Marsteller, transportation/growth and development reporter, can be reached at 745-7080, ext. 2630.