A Virgina bank has initiated foreclosure proceedings against the developers of the International Yachting Center in Canton, Baltimore's largest marina and boat storage facility.
In documents filed in the Circuit Court for Baltimore City during the summer, representatives of Perpetual Savings Bank of Alexandria, Va., claimed that four entities affiliated with the Boston Street marina owed the bank more than $3.4 million as of July 12 and that interest was accruing at the rate of $918.22 a day.
More than $1.7 million was owed on a loan of $1.9 million, and nearly $1.7 million was owed on promissory notes in the amount of $1.55 million and $875,000, according to court documents.
Perpetual provided the money in the 1980s to help developers build the marina complex off the 2500 and 2700 blocks of Boston Street. More than 400 slips already have been built.
The defendants named in one or both of Perpetual's two suits are: Marina Ventures Internationale, Waterfront Internationale Ltd., Constellation Place Joint Venture and Constellation Place Corp. All are connected to developers Dwayne Stevenson, his son, Scott, and Gale Brimhall, who launched the yachting center in the early 1980s.
Mr. Brimhall and the Stevensons could not be reached yesterday. According to their attorney, Richard Rubin of Neuberger, Quinn, Gielen & Rubin, the developers are working with the bank to find a way to pay off their debts.
Mr. Rubin said that the court proceedings reflect the depressed state of the boating industry.
"The market has slowed in marina slips, just like everything," he said. "It's a luxury item. But it's still a beautiful marina, with strong potential. It's going to come back, like everything else. Everybody will do fine."
Working with Baltimore County-based developer Norman Rockwell, Mr. Brimhall and the Stevensons announced plans several years ago to build a $100-million condominium and retail complex called Lighthouse Point on the former J. S. Young licorice company property next to the boat slips, but that project has not moved ahead.
According to Mr. Rubin, Perpetual's suits are unrelated to Lighthouse Point, whose primary lender is Maryland National Bank. Mr. Rockwell has since suffered financial setbacks in connection several smaller development projects, including the Washington Square town houses between Fells Point and Canton.
Mr. Rockwell and Maryland National Bank representatives could not be reached for comment.