A North Carolina-based developer paid $905,000 at a bankruptcy sale for 20 lots in the Tuscan Sands subdivision of Barefoot Resort.
While the sale likely will help reenergize home building in the troubled community, it won’t come near to paying off the debts of SCBT and Horry County State Bank, the two primary lenders to Legacy Development SC Group LLC.
SCBT was owed nearly $2.1 million and Horry County State Bank $984,000, according to court papers on the bankruptcy sale.
Legacy Development was forced into bankruptcy by other creditors of the failed development in Tuscan Sands.
Bill Clark Homes, which bought the 20 lots, is headquartered in Greenville, N.C., and has developments throughout eastern North Carolina, including Brunswick County, and other developments along the Grand Strand.
Trish Haggard, sales manager for the company in Myrtle Beach, did not know a timetable for the company’s plans for the lots.
The community was originally permitted as an apartment/condominium development in 2005, which changed to a single-family home community in 2007.
Just two homes had been built there as of February 2013.
Legacy owner Ronald LeGrand and others were accused of fraud in a lawsuit by Flagstar Bank, which said it lost $4.1 million in loans on 14 properties in the 34.2-acre development.
Specifically, the suit said that LeGrand and others submitted documents to the bank with inflated appraisals, misrepresentations about the condition of the property and the income of the buyers.
When the properties went into bankruptcy, the suit alleged, another LeGrand company would buy them at greatly reduced prices.
LeGrand couldn’t be reached for comment Friday afternoon.
Emerald Homes, another development company, also has an interest in Tuscan Sands and is now marketing it on the Internet as a 108-site community along a Greg Norman golf course and the Intracoastal Waterway.
GFY Holdings unsuccessfully bid $835,000 for the 20 lots sold at bankruptcy.
Contact STEVE JONES at 444-1765.