Haysville sues to gain control of subdivision from defunct developer

The city of Haysville has filed suit against builder Don Mertens and his company, Don Mertens Custom Homes, to gain control of a foreclosed subdivision.

Mertens was the main developer of the River Forest subdivision, which sits between Seneca and Broadway on the south side of the Big Ditch.

A few of the development’s lots were sold and built on, but most remained vacant when development halted after the recession.

According to the suit, Mertens was supposed to create a River Forest Homeowners Association in 2010 and transfer legal control of the subdivision to it, but never did. Mertens continued to have legal control over the subdivision bylaws and receive dues and assessments from any of the other homeowners, the suit said.

He declared bankruptcy in 2012 and, according to the suit, the company is in the process of being closed down.

After Mertens failed to pay property tax on the undeveloped lots for three years, they went into tax foreclosure. The city of Haysville created an entity called a land bank to own the lots in an effort to sell them. It owns 64 lots.

According to the suit, Mertens still controls the bank account at Mid-American Credit Union where dues and assessments are held.

The city created the association, but Mertens hasn’t turned over legal control or the money to it, yet.

Leaving Mertens in control of the subdivision means he could require that all new homes be built by Don Mertens Custom Homes, said Haysville Mayor Bruce Armstrong. It would also mean that the city of Haysville, as owner of some of the lots, would potentially pay its assessments to itself through Mertens’ hands.

A message left for Mertens on Wednesday was not returned.

This story was originally published August 3, 2016 at 10:12 AM with the headline "Haysville sues to gain control of subdivision from defunct developer."