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Rights to second set of FHSU apartments on sale block

Published on -6/14/2011, 9:40 AM

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By JUDY SHERARD

jsherard@dailynews.net

Stadium Place Apartments will not be sold at auction Wednesday, as reported in Monday's Hays Daily News, however, the confusion is not limited to published reports.

A story Monday incorrectly identified the property being auctioned as Stadium Place Apartments on the Fort Hays State University campus.

After the story was published online, FHSU officials notified the newspaper that was not the case.  

The property being sold Wednesday is the intangible development rights for the second set of apartments yet to be constructed on campus, said Mark Rondeau of Watkins-Calcara Chtd., Great Bend, representing Paul-Wertenberger Construction, a Hays contractor and plaintiff in the case.

The order of sale states Paul-Wertenberger recovered judgment against Uniplace II LLC for $491,537.80 plus interest, and such judgment was declared to be a lien against the rights to develop the property -- which formerly was home to dormitory Agnew Hall.

Uniplace LLC was the developer of Stadium Place Apartments; Uniplace II was leasing the former Agnew Hall site to build new student housing, which originally was expected to be complete by June 2012.

The new housing is legally the second phase of the contract that led to the construction of Stadium Place Apartments, according to FHSU legal counsel Todd Powell.

Rondeau confirmed Wednesday's sale only involves the student housing yet to be built, noting some of the initial paperwork for Wednesday's sale contained the legal description for Stadium Place Apartments, rather than the correct one, he said.

Defendants in the March 23 foreclosure petition for Stadium Place Apartments are Uniplace, Uniplace II, developers Brooks L. Kellogg and Gail V. Kellogg, city of Hays, FHSU, developer Richard A. Friedman and Paul-Wertenberger Construction.

The petition said Uniplace was in default and owed the principal sum of $3,785,684.21 plus interest in the amount of $4,416.63, plus interest in the amount of $552.07 per day from and after March 17.  

It stated if the petition was approved, a sheriff's sale would take place.    

When asked Monday if a date had been filed for the sheriff's sale of the apartments, Ellis County Sheriff Ed Harbin, who will oversee the proceedings, said he also believed Wednesday's sale involved the apartment complex.

No additional papers have been filed at this time for the sheriff's sale of the apartments with Ellis County District Court.    

The $5 million Stadium Place Apartments -- which opened for the 2005-06 school year and is located between Lewis Field Stadium and Wiest Hall -- was built by Uniplace, a company created for the project, using city industrial revenue bonds. The project was headed by Brooks Kellogg, a developer with residences in Chicago and Colorado. Kellogg, 72, pleaded guilty in April in U.S. District Court to charges of interstate travel with intent that murder be committed, which carries a maximum penalty of 10 years in prison.

The charges stemmed from an October incident at Denver International Airport in which Kellogg was accused of attempting to hire a hitman, who turned out to be an undercover FBI agent.

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