Subcontractors settle foreclosure over car wash at 37th and Rock

A group of Wichita construction subcontractors have settled a foreclosure action against a car wash at 37th North and Rock Road, their attorney said Friday.

The subcontractors, several who have since gone out of business, have been paid by SourceOne Car Wash Co. of Fort Smith, Ark., and its lender, Arkansas-based Benefit Bank, said Michelle Brenwald of Klenda, Mitchell, Austerman & Zuercher, who represents seven of the subs.

Those contractors filed more than $500,000 in liens last year against Legends of Wichita, a car wash that opened in April 2009.

Terms of the settlement are confidential, Brenwald said. SourceOne owner Ronnie Corbin confirmed the settlement on Thursday.

"They aren't whole, including interest and penalties, but they're going to try to walk away and rebuild their business as best they can," Brenwald said.

Brenwald said SourceOne's general contractor, CMA Management Associates of Fairborn, Ohio, isn't included in her clients' settlement agreement.

"They're in default, apparently, and we're still pursuing claims against the general contractor for nonpayment," she said.

The payment issue hit her clients at a bad time, Brenwald said.

"These are guys who need to go to their suppliers and get products, then pay off their accounts when they get paid," she said.

"When you go get supplies on credit and you can't pay for them because it's the only job you're working, it's a problem. With the economy tanking at the time they were finishing this job in the spring of 2009, it's tough."

CMA and the subcontractors also built Legends car washes for SourceOne near 13th and Maize and at 700 N. Webb Road. Those sites were not included in the foreclosure.