A bank in Omaha files notice of foreclosure on property belonging to the owners of the Hutchinson Mall

Posted 3 years ago

By News Staff

In court documents filed Wednesday, the First National Bank of Omaha has filed a petition of foreclosure against the owners of Hutchinson Outlots, LLC, and the Rubloff Development Company, based out of Rockford, Illinios. The company owns the Hutchinson Mall and surrounding property.

This is based on a promissory note dated July 27, 2007 in the original amount of 2-million, 707-thousand dollars, then modified the terms on October, 1, 2008. They also delivered to the bank a promissory note dated December 15, 2010, of over 2.4 million dollars.

The bank alleges the company defaulted on the loans or mortgages on parcels of mall property, and they’re now asking that the entire principal amount of the December 2010 note be paid including all accrued and unpaid interest. It should be noted that this does not include the mall building, but adjacent vacant properties including what is called the Home Depot addition.

The Omaha bank is asking for judgment in the amount of 2-million, 182-thousand, 623-dollars plus interest, late charges, cost and attorney fees accruing from and after January 23, 2012, plus additional funds to pay the taxes, insurance, title search and surveys as a result in the default of making payments.

The filing made Wednesday by Jerry Ricksecker of local Law Firm, Martindell, Swearer Shaffer and Ridenour.

The owners of the Hutchinson Mall had recently received other bad news when one of their main anchor stores, Dillard’s announced they were leaving partly because of sales being down, but also rumors of them not being able to get any response from the owners of the Mall over some issues with their store.

We did check with the Reno County Treasurer Clark Miller over taxes owed by the owners of the mall. They are apparently up to date on all taxes. It shows they paid the first half of taxes owed this year, with the second half, 333-thousand, 943-dollars due on May 10.

City and Chamber officials have indicated to Eagle Radio recently their willingness to work with the owners to try to help solve some of the malls issues, but say they have received very little cooperation.

18 Responses to “A bank in Omaha files notice of foreclosure on property belonging to the owners of the Hutchinson Mall”

  1. Chuck says:

    Would the last one to leave Hutch turn off the lights?

  2. John says:

    There is a small problem with your logic. You wrongly assumed that anyone in Hutchinson uses the mall for anything besides walking laps.

    Your Favorite Resident :)

  3. Chas says:

    Hutchinson, the next ghost town

  4. Andy Griggs says:

    Hutchinson, love it or leave it!!!!

  5. David says:

    Another big property goes down the drain. How high will gas prices need to go before people stop driving to Wichita to shop and eat.

  6. David says:

    How about this idea. Bull doze the property and start over with a new indoor mall or a strip mall along with a new bowling ally.

    • Mary says:

      Try to run a small business in Hutch……Its impossible but town in ran in sections and depends on where and who you are. A town the size of Hutch should be growing in leaps and bounds. Has anyone been to Salina lately?? What is going to happen to Hutch ?? Seimens were going to bring in so much to the city. The hospital is embarrassing. If you go there with your loved one now you have to take care of them as the aides are far too busy to take care of their load. The city keeps building banks and I wonder who has money to put there ?? What about a new Dillions ?? We need one ??? Such a waste of money. I wonder whether to stay or leave and move back home where there is far more security.

  7. That says:

    I cannot believe what this sorry town waste money. It will be a shame if our little crap mall closes. That will mean so many more unexperienced drivers will be DYING to go to wichita or where ever they may find shopping malls. With parents working and not being able to say NO YOU DO NOT HAVE ENOUGH DRIVING EXPIERENCE and NO YOU ARE NOT RIDING WITH YOUR FRIEND THEY DO NOT EITHER. Now back in my time we listened or got spanked and then listened. These days kids run their folks and there for, watch the deaths start on going up. BELT or DEATH?

    • You're retarded happy Easter says:

      Are you insane? You don’t have any teenage kids do you. Back in your day you probably walked up hill to school BOTH ways. I bet you were also driving before age 16 and thought you were a great driver.

  8. Mike says:

    Did y’all read the story? It’s not the mall itself that’s being foreclosed upon, only the out parcels. Basically it looks like the crooks at Rubloff took out around 2 million in cash on the prairie dog village to the south of Home Depot knowing all the while that property probably won’t sell for years. This bank in Omaha will end up with a bunch of the least desirable commercial lots surrounding a mall that Rubloff is investing zero to maintain in exchange for their 2.1 million bucks. The bank will then claim it as a loss against their insurance or use it as a tax write off, then turn around and sell it on the cheap to some other company like Rubloff so they can do the same thing to some other bank. And we wonder why things are so screwed up with the economy…

  9. Eric says:

    You reap what you sow. It is just like anything else. The Mall hurt Downtown because people were not loyal, now the Mall is feeling the pain over the same disloyalty. America suffers as we all save a few bucks for something made in China. Meanwhile we reap inferior products, and our neighbor is now unemployed. I agree with Chuck and David’s first comment. And maybe when it’s all over we will see in hindsight what others saw in foresight.

  10. Anon Amos says:

    you do mean Reno County Treasurer… not treasure…. right??? If you need a proof reader, I’m available…

  11. Optimist says:

    Mary – read the news – we ARE getting a new DILLONS and a new KOHLS. And we’ve added lots of business to town, that’s why banks and credit Unions are building. The city doesn’t pick what businesses build, or close – shoppers do. If the mall closes it is because THEY did not run their business well enough to attract shoppers. They did not modernize, update or make it a place anyone wanted to go.

    I think the shots at the hospital are misinformed also – my experience there has been terrific.

    Hutchinson is a fine place to live and raise a family – if you do your part and work hard.

  12. Realist says:

    Hey, Optimist, aparently you are either part of the elite class of Hutch or are involved as one wanting to get Kohls moved into Hutchinson……Really, get real….why would people come to Hutch to shop at Kohls and then have to fine place to go dine……..there is absolutely NO WAY that this town can compete with Wichita so they should not try. We do not have the entertainment, the eating facilities to eat at……what we have is good but Burgers and Mexican can not carry a town of this size. I can certainly tell that you have not worked as hard as I have to help out this town……I want to write a book. NO why do we need a new Dillions ?? A bowling alley could be built cheaper than trying to put one in there if that is their plan. We have the Best KMART around……I always shop there because I am for one trying hard to keep it open. Sounds like you have not ever been laid off a job for sure………Look at all of the Nursing field. In the first place the rediculous purple should of never been allowed and then they spend more time now getting the signs changed out than the city does fixing the street right between the clinic and hospital……Waldron is a horrible street…..Maybe they will fix the whole street for all of the town when they put in the NEW DILLIONS we need so bad……(which if I was involved with the city would of done research and put it in South Hutch where it should be) but sorry, Kohls will not carry the load of Dillards, Penneys, Sears, Debs, The Buckle, MAURICES, ……Yes, I do read the paper and it is sad………always horrible news in it……..but in the last article I read, I did not understand that it is 100% positive that it is a completly done deal. IS IT??? Willl they come now?? They have to be attracted to the City too…
    Apparently you need to walk in the shoes of those poor people who will and have been laid off and have no income, insurance and soon Prairie Star will be more popular than the Clinic……Look at all of the people who will be on County assistance and have families……..IT hurts all of us……not just the joy of having new…….lets try to join in and take care of the old too…………
    Just a Realist

  13. Realist-Your a Joke says:

    Although you provide many valid points, you sound very ignorant. What is wrong with a new Dillon’s? What is wrong with a Kohls? The City of Hutchinson does not run DIllon’s, they do not get to pick where Dillon’s stores are placed due to the need of the people. Dillon’s, however, does get to buy the land that they choose, and build the store that they choose according to their data and what they have found to be most feasible for the company. Before opening your mouth and sharing your overwhelmingly negative uneducated opinion, I would encourage you to understand the economical decisions of businesses.

    Apparently you haven’t been out much considering your opinion of the Hutchinson restaurant market. All we as consumers can do is play the hand that is dealt us.

    For your information, the people who are laid off do not get “county” assistance. When laid off you are given the opportunity to file for unemployment. Unemployment is a company (the one that laid you off) funded program. I do not understand your negative opinion, and you are clearly uneducated as to the facts that you provide. As someone who has “done so much” for this community, you are not only an insult to the rest of Hutchinson, but a disgrace to those you have “helped”. Your opinions are better kept to yourself, and I would encourage you to find a new town to spill your negative attitude on.

  14. Andy says:

    HOORAY!!!! Someone just hit the nail on the head. One reason we have so many burder barns and taco shacks is that we have people that will eat that swill. Then they waddle around town taking up too much space and overload the medical community So get an education, take care of yourself,work hard for a good company and prove you worth to this city!!!

  15. life long! says:

    I really don’t get this……I have lived in this town my entire life and i have to say that it discusses me to hear residents of this town speak so horribly of it. My mother and father moved here in 1958 and raised 10 children here. I in turn have raised all my children here. I guess my point would be that i LOVE hutchinson and can’t imagine raising my FAMILY anywhere else. You realist should have an attitude adjustment or possibly consider moving because ultimately, your type will be the demise of this town. I make it a point to shop with locally owned businesses because that supports our town. I WILL not make a special trip to wichita to purchase an item, I’m confident that it can be found here. Now, on the flip side, we try to do improvements to a fine town and uneducated people such as yourself complain because we have to pay taxes on it. How do you believe any such improvements could happen without us doing our duty to support our city? We have many family orientated activites for people to do here along with a very rich history, maybe you should reasearch that to get a better insight before you just think we will be a ghost town. Residents of Hutchinson, who, like me, love this town are to strong willed to be persuaded to your mind rot opinions. Move to wichita, there are plenty of people just like you there. You will fit right in!

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