Simmons First National Bank has filed a foreclosure action against a North Little Rock nonprofit over a delinquent mortgage on a Main Street property in the city's downtown.
Argenta Community Development Corp., a group often credited with helping turn around the city's once crime-ridden downtown, owes $563,066.87, plus interest, as of Tuesday on a mortgage lien on property at 709-715 Main St., according to the complaint filed in Pulaski County Circuit Court on Tuesday.
Argenta Corp. has modified the mortgage eight times since taking out a $560,000 promissory note Dec. 30, 2008, according to the complaint.
Hannah Vogler, on contract as executive director for Argenta Corp., said Thursday that she had a voice mail from that morning from a process server, but hadn't been served with the complaint as of Thursday afternoon.
"I've heard of it, but I haven't seen it it," Vogler said Thursday.
Vogler said that she and board Chairman Don Chambers have been in an "ongoing communication" with bank representatives over the defaulted loan, but wasn't aware a complaint was about to be filed.
Vogler said that the property "has deteriorated over the years" while being for sale and that Argenta Corp. didn't expect to recoup any of its cost from the property.
"We are likely looking at a short sale regardless, and we know that," she said.
Argenta Corp. was formed by residents and property owners in 1993 and became the catalyst for revitalizing North Little Rock's downtown.
The agency and the city of North Little Rock are former partners in the federally funded Neighborhood Stabilization Program grants, commonly referred to as NSP2, for the construction and redevelopment of dozens of housing units in inner-city neighborhoods. Habitat for Humanity has taken over the Argenta Corp. role since late last year.
The city isn't involved with the property listed in the mortgage complaint, Deputy City Attorney Matt Fleming said Thursday.
Argenta Corp. moved its offices early this year from a site on Main Street, at Mayor Joe Smith's urging, to use space rent-free in the city's Public Works Department, 500 W. 13th St., to help with the organization's "cash flow problems," Smith said at the time. The nonprofit manages the Argenta Square apartments, 617 Maple St.
"They are sharing temporary housing in our Public Works office as they work through their issues," Smith said Thursday. "My goal with the [nonprofit] is for them to stay in control of their apartment complex and individual rental sites in Argenta."
In July 2011, the agency paid the city $68,248 under threat of being sued by the city, for repayment of federal grant money used to build a subsidized house. The nonprofit had failed to meet its requirement for nearly two years to repay the federal government after the house was sold, and the debt then fell onto the city, as a project partner.
Vogler was hired on a contract basis as the agency's executive director last year, after the agency went through three full-time executive directors in 6½ years.
Metro on 08/29/2014