Indian Ridge developers face lawsuit

A ground-breaking ceremony for the development took place in late January, and sales on lots for the first phase of the $1.3 billion residential and vacation development should begin in the next 60 to 90 days, according to Indian Ridge Real Estate Group broker Melanie Pellham.

While deposits are being taken to hold lots for potential owners, lots cannot be sold until the final plat for the planned development is approved.

Phase I will include a welcome center with 100,000 square feet of office or retail space, along with private single-family lots, both gated and non-gated, and lots for cabins and condominiums.

Plans for subsequent phases of the development feature a golf course, hotel, water park, marina, restaurants and a fire/police station. In five years, the community will comprise housing for up to 7,800 residents.

Jim Shirato said the site offered unique advantages for the “multigenerational resort community” he envisions.

“There’s a lot of projects down (in the Branson area), and they’re great projects,” he said. “Some have very nice living arrangements and hospitality, others have a view of the lake and nice cabins, others have nice golf courses away from the lake, and others are by the water but don’t have this or that.”

Broker Pellham said one of the advantages of the development is flexibility for lot owners, both in the choice of builder and in the time frame for construction.

“There are a lot of people from the West Coast and from the East Coast who are contacting us, saying they want to be in the Branson West area,” Pellham said. “They like the access to Springfield, to Kimberling City and Branson.”

She added that the lack of restrictions on construction timetables will also help to attract potential homeowners.

Lots in the development range from $45,000 up to $195,000 for select lots of more than an acre with views of the golf course and lake.

Another unique aspect of the development: the ability for owners of nongated lots to rent their homes on a nightly basis while they’re away.

“For people that would consider this a second home, that could make this an income investment,” Pellham said.

Not everything, however, is moving so smoothly.

A potential stumbling block for the development comes in the form of a lawsuit filed by Emmitt Mitchell, a developer from Overland Park, Kan. The suit alleges breach of contract, saying Mitchell was instrumental in obtaining the necessary financing for the development, and as such has certain entitlements in regard to Indian Ridge.

In the suit, filed March 6 in Greene County Circuit Court, Mitchell said he had a written agreement that entitles him to partner status and a 10 percent stake in the resort.

Mitchell’s attorney, Roger Warren of Kansas City firm Sanders Conkright & Warren LLP, said Mitchell developed the idea of building the community in phases, making it easier to obtain financing in smaller increments.

Additionally, the suit says that Mitchell paid half of $40,000 needed to retain an option on the land until financing could be obtained.

“He came in when the deal was about to crater and came up with a plan to develop it in phases and substantially contributed to saving the deal,” Warren said. “It’s very unfortunate that we’re where we are. Emmitt is not a greedy guy – he just wants to be treated fairly.”

According to Mitchell’s suit, initial financing for the development was obtained through Columbian Bank & Trust Co., based in Topeka, Kan. Shirato confirmed the information.

Shirato added that a letter from the bank states that Mitchell was not involved in obtaining the financing for the project; he declined to provide a copy of the letter.

Officials for Columbian Bank could not confirm by press time.

“It’s unfortunate that these things occur,” Shirato said of the lawsuit, noting that he’s confident that right will prevail as the case progresses.

“But anyone can file a lawsuit, and we can’t stop people from doing that.”[[In-content Ad]]