Among its troubled loans, First National Bank has foreclosed a mortgage with Angelus of Clintonville.
In 2000, a former hospital turned nursing home shut its doors, leaving the city with a large, vacant building.
The city of Clintonville worked with the owner of the former nursing home and Angelus Corp. to secure funding and renovate the building into an assisted living facility for seniors.
The project was estimated to cost $6 million, toward which the city contributed more than $1 million by creating a Tax Incremental Finance District (TIF).
TIFs allows cities to capture all new tax revenues from a development in order to pay for the money they borrow to build infrastructure or provide incentives to attract that development.
In May 2002, FNB executed a mortgage with Addison Realty and Clintonville Castleberg LLC for the project.
Vincent Cassiani signed a written guaranty on the mortgage in May 2002 and Robert Castleberg signed a guaranty in July 2008.
On June 14, 2014, FNB filed a mortgage foreclosure against Angelus of Clintonville, Addison Realty, Clintonville Castleberg and the two parties who had signed guaranties.
At that time, FNB claimed Angelus owed $4.173 million in principal and interest on the loan.
On Nov. 17, 2014, FNB filed to dismiss the suit against Vincent Cassiani.
On Dec. 22, FNB filed to dismiss the suit against Robert Castleberg and Clintonville Castleberg LLC.
According to court records, FNB’s case remains open against Angelus and Addison Realty.
Angelus subsequently sold the retirement facility to Aster Retirement Community.
On Feb. 18, the Clintonville Tribune-Gazette reported that the sale to Aster may violate the agreement Angelus had with the city of Clintonville.
The new owners have a tax-exempt status. If the city cannot collect taxes on the property it may have to use $300,000 from the general fund to pay back the bonds.
Clintonville’s city attorney is currently reviewing the matter.