There has been another setback for condo investors in downtown Fort Myers as the developer of Prima Luce now says the bank he attempted to get a loan from to pay off his debts was a scam.
The condo project along First Street has been plagued with delays for years and now faces a foreclosure auction.
Prima Luce Developer Bob MacFarlane told Gulf Coast News last month he secured a loan to pay off the debt on this vacant piece of property; however, he claims he’s working with another lender.
However, many condo investors say they now feel as though they’re being scammed after handing over hundreds of thousands of dollars with nothing to show for.
For eight years condo investors like Dan Payson invested $100,000. Christine Campbell handed over $139,000 along with Scott Wise who shelled out $132,000.
They are just some of the investors who were promised two 22-story condo towers that were never developed after they were first announced in 2016.
Jeff Sach is an investor who said he believe he was sold an empty bag of tricks.
He’s referring to Bob MacFarlane, the developer who admitted last month that the project has faced numerous delays since it was first announced.
MacFarlane lost funding last year and was facing foreclosure if he didn't find a bank to lend him money. He said last month, he found a lender to give him the cash he needed.
“We have finally received a full approval from a lender. We have signed the transaction,” MacFarlane said.
He now says that the loan was a scam.
Payson and others said they were not surprised.
However, MacFarlane said that he found another bank to give him a loan on Monday.
"Today, Mr. MacFarlane is meeting with his lender face-to-face, and he looks forward to putting this all to rest before the 13th,” according to his PR firm.
“I believe it's kicking the can down the road,” Campbell said.
That's because, on the 13th, Lee County Clerk of Courts Kevin Karnes confirmed the property is set for a foreclosure auction.
“He (MacFarlane) would need to come up with a $36 million judgment plus 1.5 percent of registry fees, which puts it around $37.5 million to redeem the property and to cancel the sale,” Karnes said.
However, condo investors say they’re not hopeful.
The property is slated to go up for auction on Thursday. It will go to the highest cash bidder if MacFarlane doesn't pay off the debt he owes.
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