Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, June 22, 1990 TAG: 9006220194
SECTION: BUSINESS PAGE: B-5 EDITION: METRO
SOURCE: SANDRA BROWN KELLY and DAVID M. POOLE STAFF WRITERS
DATELINE: LENGTH: Medium
The bank announced its intention to sell on July 6 the acreage of Smith Mountain Fishing Village Inc., along with other properties, to satisfy $800,000 in loans.
The fishing village, which features 24 villas and a number of docks, has about 60 members. The 1989 State Corporation Commission report listed Dean as president of the project. He said recently he had resigned that position and is only a 20 percent stockholder.
Other officers of the fishing village in 1989 were William T. Wilson and William H. Moody of Covington and John R. Meteney of Smith Mountain Lake.
At his creditors hearing in the Poff Federal Building on Thursday, Dean said the fishing village property was for sale, suggesting he was unaware of the foreclosure proceedings.
Beacon Light Marina Yacht Club Inc., a time-share project, is in bankruptcy and a West Virginia bank foreclosed on Beacon Marina recently. Both were Dean's projects with a variety of partners.
A portion of the money owed the Bank of Floyd was a loan to Smith Mountain Lake Fishing Village Inc., Universal Resorts and Real-Vest. Dean was not involved in Universal Resorts or Real-Vest, but principals in those projects were his partners in other ventures.
Overlapping partnerships and Dean's tendency to guarantee loans personally for corporations in which he was involved added to the confusion at his creditors' meeting, which went on for 2 1/2 hours Thursday.
Bankruptcy trustee Roy Creasy called it a preliminary meeting and asked Dean and his attorney, Charles Allen, for more detailed information on Dean's involvements. Creasy set a second creditors' gathering for July 23.
"If I can just get my money and get out of this . . . but things are so clouded," said creditor Dan Callahan. Callahan invested $275,000 in the proposed Smith Mountain Lake Resort Hotel and along with more than 20 other people holds a $2.1 million third deed of trust against the Bedford County land where the hotel was to be built. First National Bank of Rocky Mount and Sentry Federal Savings Bank hold first and second deeds of trust for more than $1 million.
Although Creasy pointed out that the third deed of trust against the hotel property may be in doubt, he urged all the deed holders to agree to a sale of the land, which has been under contract to developer Lynda Morran of Boones Mill.
The third-deed creditors, represented by Joe Roberts of Wise, said they were ready to sell if Morran is serious. The list of Dean's creditors, which include 17 lending institutions, were testimony to his ability to attract investors and loans.
Dean's Fairway Bay Village condo, valued at $150,000 in his list of assets, has a mortgage of $140,000 against it from CorEast Bank and a second deed of trust for $48,000 against it from Crestar Bank. The condo also was used as collateral on a loan from Sentry Savings Bank of Norfolk.
Dean said in his bankruptcy suit that he has been living on borrowed money. "I can't think of any compensation I got from any of the projects," he told Creasy.
Dean's corporations have been involved in land sales and development, efforts to start a sand quarry and plans to build mini-warehouses.
by CNB