According to court records both Mark Clark from Monogram Builders and Tom Ruark owe close to $20,000,000.00 and are being fined around $2,000.00 a day in interest alone.
Records also show PNC is going full speed ahead to collect what is owed and have even repossessed one of their vehicles.
Last week we had mentioned the difficult times consumers are having in Light House Sound and the Riddle Farm. Ruark owned the Golf Course in both locations and Clark was one of the biggest builders in Light House Sound.
Now, that being said, let me say this. Before ANY of you go on the attack and start saying they deserve it, etc.. Yes, Developers can in fact make a TON of money. HOWEVER, they also take a TON of risks and this example is yet another perfect example. Jim Cane used to also be well known for his work in the Ocean City area. Bob Warfield and Hal Glick got into the business and PNC called their loans as well and they too came crumbling down.
ALL incredible business people who took incredible risks and I'm sure many of you know many others who have done the same. So before you kick people when they are down, know there are several Presidents, many Congressmen and others who ALLOWED the Banks to make BS loans to make the economy appear better than it actually was and people like ME have been spending YEARS trying to educate each and every one of you what was coming, including these Developers.
Many of them asked me why I wasn't investing in Ocean City and my reply to them was simple, know when to hold up and know when to fold up. They didn't listen, unfortunately.
Also remember that these very same Banks calling the loans of these Developers were wining and dining these Developers and encouraging them to BUILD, BUILD, BUILD. As long as they had multi million dollar inventory and the Banks could keep making loans out to unqualified buyers, THE BANKS WERE LOVING LIFE.
This is why I can't stand Banks and rarely do business with them. They are your best friend when the cash is flowing and your worst enemy the moment they see any sign of weakness.
37 comments:
I'll kick Ruark when he's down. During the boom I bought a house he built that is falling apart around my ears. Sub par sub contracting. It's called karma.
We said the same thing Joe. Real estate "experts" were trying everything in their power to get us to buy a few lots in Riddle when they first went up for sale, telling us how we could "flip" them and make a profit.
We knew better because having always been around people of great wealth, we know they tend to detest living in subdivisions.
The old Chinese proverb; Where Honor Dies Interest Lies.
It's as applicable today as it was a thousand years ago. There are a lot of developers that are going down for the Count. The Banks are not your friends, and Debt is your arch enemy.
The Maryland case search showed they owe a ton of money. And PNC is the common thread.
Their plight is part of a larger picture. At one time West Ocean City was a sought after place to retire. O'Malley changed all of that. Now wealthy people are fleeing Maryland not retiring here. Maryland growth rate comes from immigrants and they can't afford second homes in OC. Let not forget the stalled middle class income. You can't buy a second home on that. On top of all of this, Maryland has imposed all kinds of fees on new building, impact fees, high efficiency septic systems, fire sprinkler systems, etc. and downzoned the land. Should we be surprised that two big players are going down and the jobs that they use to provide will go away? Of course not, this is just another rung in the decline of the State of Maryland. Stand back however, because O'Malley will be back on his horse for another victory lap!
Take it from one of Obama's Billion Dollar Vacations....
Ruark is also chummy with all the slumlords.Screw him....payback is a B!
And with all due respect Joe.
How many contractors and suppliers have gotten shafted????
His home building leaves a lot to be desired. I personally know 8 home owners who are having all kinds of problems. Just talk to some home owners in the Elk Creek development.
While I do believe that folks like Ruark can be scummy (and I do have personal reasons to believe that), I also understand the risks involved with the gains that they may or may not make. Unfortunately, the developers aren't fully to blame. The real blame lies in the hands of the decision makers that allowed some of their projects to happen. Ruark does have some very good developments, but he also started some that were ill-conceived and should have never been approved. He's not the only one either and should not be singled out just because of the price tag. Look at what Kirk Kinnamon has done in the Village of Aydelotte over off Beaglin Park Drive. He slipped through the development approval amongst the good ole boys in the Tilghman regime and created a TIF nightmare. Who in their right mind would approve a 600+ unit development slated to be Salisbury's largest and most densely developed community? And who would would allow a national builder (Ryan Homes) to come in to build without a contract so that they can just up and leave if they aren't getting enough sales? Kinnamon is the sleaziest of sleazeballs, but people at one point allowed him to move forward. Now what do you have? A huge partial developed piece of land with mounds of dirt piled everywhere, grass growing two feet tall along the Barrie Tilghman Freeway, distressed homeowners and a debt to the City that will likely never be paid back. He'll skate away with all of his personal property and leave behind a trail of rubble for the City to clean up.
Again, I understand there are risks involved and the rewards can be very big; however, I do feel that developers can get off fairly easy when it hits the fan. Then again, there are developers that are still do ok despite the economic downtown. Blair Rinnier is doing one hell of a job keeping Rowen's Mill moving. He even has a disadvantage of being in Fruitland's high tax area and is still building.
Joe -- you musta mist da beeg nuse.
Memo Diriker and Rick Pollitt says that it's all better now!
does this mean the Greens Fees will become affordable??
Thanks to Progressive income transfer.. there are not enough Millionaires left for them to fleece.. perhaps they will become Section 8 Housing for Chicken Plant Workers
PNC is well known around these parts for calling in loans, and putting people in a bind.
Sadly many of these accounts were in good standing.
The Glen Riddle track housing neighborhood has to be the most ghastly looking place in all of Worcester county if not the whole entire Eastern Shore. Even the name "Glen Riddle" is unattractive. I understand the Riddle part but Glen?
A much more superiour and pleasing option would have been to keep the farm theme in mind when it was designed. The designers should have kept the center tree lined lane and design out from that.
Tom did lots of good for many years in the Salisbury area....and he actually has no involvement with the house in Glen Riddle. His fatal mistake was giving into the City of Salisbury and agreeing to build within city limits in two different locations. The "beginning of the end". PNC's calling of the notes will result in more unfinished projects and further down grading of our community. "Part of something" is a hell of a lot better than part of nothing. Knowing numerous business men and women that have dealt with them...it's a nightmare that never ends.
As someone who survived PNC, let me explain what they did. I bet they got their loans from Bank of Fruitland or Peninsula Bank. PNC purchased those banks and their loans. PNC decided one day they did not want anymore real estate development loans, so they called all the loans. Business loans are usually only for 1 to 3 years. Mind you they called loans on everyone in the business whether or not they always paid on time. The bank then set you up with a "work out" manager who's job is to get you out of PNC. It was very scary. Lucky for us another local bank took our loans. We are probably only 1/4 the size of these guys. I never want to do business with a non local bank again! Best of luck to these men and all who work for/with them.
As a wealthy member of this community, I find this to be a real shame. I am an avid golfer and find the greens fees to be very fair. When the elites of this area start failing, the writing on the wall becomes clear. It is not dissimilar to shooting the commanding officers in the Civil War. You need structure or the house will fall.
2:48 why don't you google Glen Riddle and find out the history of the farm that was there. Also Man O War. Interesting history for our area.
You all dont get it the WHOLE SHORE is in very big trouble.....there won't be much left a year from now or even less.....
Its not the shore its the nation. The western society of consumption has blinded us to real joys of life. My eyes are open now, never to return to the way I was. How about yours?
Wow, 3:11. You're the most pompous jerk I've come across in a while. I'm so glad that I'm not your neighbor.
Well 4:10, it was bankers like MY Father who allowed all this land to be developed. Those bankers were also wealthy. Banks and land, land and banks. The story doesn't change.
I survived PNC (Please No Customers)and it was like dealing with the devil. Started with Bank of Fruitland then Peninsula which were good banks and never missed a payment. Once PNC took over they shut the project down by tying our hands even though we were selling. It made no sense to me what their logic is. They only hurt themselves and us. They have really compounded the damage done to the easternshore's poor economy just as much as the Obama administration. I have several friends had have had the same experience with the devil bank.
I can give some information with regards to The Riddle Farm. Riddle of course, was the surname of the famous owner. Glen Riddle, PA was where he was born. The farm was known to family, friends and associates in the racing industry, as well as in legal documents of the time, as simply The Riddle Farm.
There are some references made to it as The Glenn (extra N added) Riddle Farm in newspaper articles during the Man O War years, but this name was never used by Riddle or the family members who took over ownership of the farm after Riddle's death. The house burned down in the 1960's. The last person to have any extensive personal knowledge of the farm and it's residence including interiour features and the dependencies on the property died in 2003.
PNC is the devil. Despite paying all bills in full and on time they still called the loans of many many people. No one should do business with them. Tom Ruark has created a lot of jobs in the community. He has nothing to do with the construction in Riddle Farm. Without folks taking risks it is impossible to grow. I guess we could tax ourselves into prosperity.
PNC also bought the bank that loaned Warfield and Glick the money, then PNC refused to renew their line of credit when things got tight.
When PNC gobbles up a local bank, they leave no decision-makers on the premises. Gone are the days when you could walk into a branch (that has been bought by PNC) and get an answer. All loans go to "the committee" in Pittsburgh, and you'll never be able to speak to anyone on it. You're just a credit report and a set of financial statements to them.
Thank God for the few remaining local banks!
Take it from someone who has learned the hard way. Never, I mean Never - borrow money. The Bible says that the Debtor is a Servant unto the Lender. That concept is as applicable today as it was several thousand years ago.
Just go ask Tom Ruark, K Kinnamon, Monogram etc, and they'll all tell you the same. When it comes to paying the Piper(PNC) - you'll either do what they say or suffer the consequences.
I have read it before on this blog, Salisbury and Wicomico are in a severe Depression. Either way you look at the local economy is has been in shambles for well over 6 years now. And it looks to be getting worse. Foreclosures are everywhere. And abandoned homes to also everywhere. People just packing up and abandoning the structures.
The problem with all who are saying it's PNC's fault, I'm not so sure. I would tend to believe you all except MD judiciary shows money being owed to other banks, the state and other entities as well. If PNC called the loans, it's because they were seeing the handwriting on the wall and wanting to be in the forefront for filing liens.
In other words they saw money flow was drying up and didn't want to get stuck more than necessary.
PNC has called many local business loans no matter your credit.
PNC realizes that that outlook for shore is anything but rosy. They are calling loans of companies in trouble. Face it folks the big trouble for the shore is just beginning. Again finger pointing fixes nothing. PNC is doing what it needs like it or not. They will protect their bottom line no matter what and see the shore is finished.
While banks should be allowed to call loans that are not performing they should not be allowed to purchase loan portfolios knowing that they are going to undo the vast majority of real estate loans. PNC wanted competition gone and retail customers. As mentioned on this post, PNC has had much to do with bringing the real estate market down further. They don't use discretion to determine those worthy and who likely will persevere tough times. They just vacant sectors indiscriminately. These are real families with roots here on the eastern shore who in many cases have had generations of wealth building impaired by a sinister bank. I hope the word continues to travel and they can't find a single customer here.
Conservatism is a thing of the past.Obtaining something and then holding onto it until conditions allow one to obtain their next acquisition without losing their last acquisition is out of style.No,I am not writing this while I am drunk and I mean it.Creative forms of financing growth are akin to a personal Ponzi scheme;If everything goes absolutely perfect you'll make a killing,but what are the odds of that happening?
I agree to an extent with 9:00 but I also think responsibility lies with the developers as well. It's no different than the home owners who took out mortgages they really couldn't afford. I think the old idiom "keeping up with the Joneses" comes into play and how nothing ever good comes with this mindset.
9:37 got a Government job because he has an Aunt or Uncle with one..or even his Mommy.. he expects us to pay his College loans off too
Capitalism is dead to Progressive Socialist Slime.. who want your assets so they can pay insurgents to disrupt any Country that is still Non Marxist ..
it's their way..then then lie about it and tell you it's for YOUR own good...not their own
Well at least they didn't steal any money from anyone. My daughter and son-in law are dealing with Bryan Adkins from Atlantic Bay Homes, who was an independent builder for Berach Homes. They are not the only ones he has stolen from.
Developers and the banks are all in the same bed. They usually find a way to work things out, because they have a different set of rules. Don't think pollitt, mackes, gillis don't share a pillow in the section 8 treasure?
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