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Bill Freehling is a business writer for The Free Lance-Star and Fredericksburg.com. This blog is on Fredericksburg-area business. Send an e-mail to Bill Freehling.
Foreclosure auction scheduled on Spotsylvania property
A Dec. 30 foreclosure auction is scheduled on an industrial building in Spotsylvania County that was involved in a local government incentives discussion in 2008.
The auction is scheduled for the property at 11700 and 11701 Shannon Drive, which is owned by a limited liability company composed of the owners of Creative Dimension Group.
CDG, which has been in business since 1982, makes cabinets, exhibit displays, millwork, woodwork and other products for museums and commercial clients. The company is open and has no plans to close.
The limited liability company — Sullivan, Keating & Johnson, LLC — purchased the property in May 2009 for $2.95 million, according to Spotsylvania records. The property, known formerly as the Motion Control Building, includes about 19.5 acres and a roughly 88,000-square-foot building.
Sullivan, Keating & Johnson is in a legal dispute with its lender, BB&T, said Debbie Sullivan, one of the owners of the LLC and the president and CEO of Creative Dimension Group. She said BB&T initiated the foreclosure proceedings, and Sullivan, Keating & Johnson is fighting it.
Sullivan said CDG leases the building from the LLC and plans to remain there regardless of how the foreclosure process plays out on the real estate.
The auction for the Shannon Drive building is scheduled for 11 a.m. Dec. 30 in front of the Spotsylvania Circuit Court building at 9107 Judicial Center Lane, though it’s unclear if it will proceed as currently planned.
People interested in more information about the auction are being directed to John D. McPhaul with the Troutman Sanders LLP law firm.
CDG got an incentives grant from Spotsylvania in 2008 for $250,000 upfront and $7,000 a year for five years. That grant was made after CDG’s owners had planned to move the company to Fredericksburg and buy the larger former Insteel Industries plant at 1351 Belman Road, which is now home to an M&M Auto Parts vehicle-recycling business.
Fredericksburg City Council had approved a 10-year, $200,000 incentives package for CDG before the company’s owners decided to buy the Shannon Drive property and remain in Spotsylvania.
Spotsylvania Economic Development Director Tom Rumora said the county has been working with CDG for several months and hopes to help the firm through a difficult situation and tough economy. He said the company’s owners are interested in bringing in another tenant to reduce costs, or selling the building and leasing it back.
Rumora said the $250,000 incentive requires the company to stay in Spotsylvania, though not necessarily in its current building, through 2018.