Potomac Timber files for bankruptcy
by Tom Chillemi
Potomac Timber Investments #227 LLC, which purchased the Urbanna Yachting Center with plans to build 14 condominiums on Urbanna Creek, has filed bankruptcy.
Potomac Timber filed a Chapter 11 petition on June 27 indicate documents from the U.S. Bankruptcy Court for the Eastern District of Virginia, Alexandria Division. The documents are signed by H. Kenneth Fleishman, “the Managing Member of Potomac Timber Management LLC, Managing Agent, of Potomac Timber Investments #227, LLC.”
The bankruptcy filing stayed the trustee’s sale of the 1.47 acres, said Urbanna Town Council attorney Andy Bury. The trustee’s sale was scheduled for June 28 at the Middlesex Circuit Court.
In the bankruptcy court records, Potomac Timber listed creditors that it owes $1,335,000 in loans and about $200,000 for services. Its assets are listed at less than $50,000.
Also listed in the petition is another separate pending bankruptcy case filed by Potomac Timber Investments #3, LLC, an “affiliate.” It was filed on June 20, 2011 in the Greenbelt, Maryland Division.
Potomac Timber purchased the Urbanna property in January, 2007 for $2.9 million after the Urbanna Town Council had granted a Special Use Permit (SUP) for the construction of the condos. However, a town council, that was shy three members, withdrew the SUP in July 2007 because the site plan did not comply with some of the 16 conditions as council had dictated in the original SUP.
In June 2008, Potomac Timber Investments #227 LLC filed a $4.5-million lawsuit against the Town of Urbanna for denying its site plan for the condominiums. Potomac Timber withdrew the lawsuit in July 2011.
The property also is the site of a sunken barge that has been on the bottom of Urbanna Creek since March 28, 2012. The barge owner is scheduled to answer misdemeanor charges in Middlesex General District Court on August 19 for failure to “remove obstruction/hazard.”