The developer of the Red Fox Inn is in significant financial trouble. 1859 Ventures was given the property in order to revitalize it after the Waverly landmark had fallen into disrepair and was acquired by the city. 1859 Ventures was slated to receive rebates for 100% of the property taxes on the added commercial and residential value for the next six years and 50% of the hotel-motel taxes for the next seven years. They failed to pay any property taxes, however, triggering the City Council to suspend their agreement with 1859 Ventures. CUSB filed a foreclosure on the property on September 18th after 1859 Ventures allegedly defaulted on its mortgage-backed notes worth $5.66million. Barker Financial has now purchased the notes and replaced CUSB as the plaintiff. 1859 Ventures is also facing several other suits from subcontractors who say they have never been paid.
