Profinium Inc. files foreclosure suit against Real Development

UPDATED — Minnesota-based Profinium Inc. has filed suit against Real Development and its principals, Michael Elzufon and Dave Lundberg, to foreclose on a few pieces of property they own here.

“It’s not nearly as icky as it might sound,” Elzufon says.

“Profinium’s great people,” he says. “We have a very long … and very good relationship with this bank.”

At issue are portions of the Petroleum Building at 221 S. Broadway and Broadway Plaza at 105 S. Broadway.

“We owe more than they’re worth,” Lundberg says.

Elzufon says the filing is mainly about one thing for Profinium.

“They need to protect their interests.”

Also, he says, it’s “for us to continue to make our exit out of various assets that we’ve had down there.”

Lundberg says there are liens and a couple of mortgages on the properties.

“In order to clean up the title, they’re going to foreclose on it,” he says. “It’s all worked out, but they filed it anyway. Their attorney jumped the gun a little bit.”

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CASA of Sedgwick County to move to the Garvey Center

WICHITA — CASA of Sedgwick County is leaving 150 N. Main St. for the Garvey Center.

Real Development just has failed to … live up to their promises,” says Anne Duncan, CASA’s executive director, referring to the owner of CASA’s current building.

Duncan says there are maintenance issues, such as an elevator that has had repeated problems, and Real Development is “not being very attentive to those types of things.”

Neither Michael Elzufon nor Dave Lundberg of Real Development returned calls for comment.

Duncan says the move, which will happen July 28, will give CASA 2,640 square feet compared to its current 1,600 square feet.

“We need more space and a place to do training,” Duncan says. “That’s one of our big considerations.”

The nonprofit trains volunteers to advocate for abused and neglected children in court.

“We’re just really excited to be able to deliver all of our training on site,” Duncan says.

Larry Weber of Builders Inc. handled the deal.

CASA will move into the Kiva at the Garvey Center, which is across from Papa John’s Pizza.

Duncan says she’s pleased that CASA can remain centrally located “without fighting for parking.”

Westar Energy posts shut-off notice at Real Development’s Farmers and Bankers Building downtown

WICHITA — Real Development’s problems with maintenance issues and unhappy tenants and vendors aren’t confined to the Wichita Executive Centre.

There are also headaches for the Minnesota Guys at the Farmers and Bankers Building at 200 E. First St. and the Landmark Building at 212 N. Market. The buildings are attached.

Westar Energy put up a delinquent notice at the Farmers and Bankers Building to shut off power on Oct. 7.

“There isn’t trouble,” says partner Michael Elzufon. “If there’s a notice, I guess it’s arguably about whether or not it’s premature.”

Partner Dave Lundberg says Real Development owes $10,000 on its energy bill and Westar also is demanding $10,000 for a utility deposit.

“We have never had a shut-off of a utility of any kind at any time in any building — period,” Elzufon says.

He wonders if this is a scare tactic on Westar’s part.

“I don’t know what you call this,” he says. “It’s rather interesting that these kinds of playing the laundry out in the middle of the world (happen). It’s a little frustrating . . . to say the least.”

In an e-mail, a Westar spokeswoman said she can’t discuss private account information.

“However, we are working with this customer to remedy the situation.”

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Real Development Corp. faces $28,000 judgment and lets corporate charter lapse

WICHITA — There’s a judgment in Sedgwick County District Court against Real Development Corp. for more than $28,000 the company owes Tax Adjustment Specialists.

As Have You Heard? reported earlier this year, Tax Adjustment Specialists helped Real Development save about $61,000 by appealing to the county to lower appraisals on a few of its downtown buildings.

“I have spoken to them, and we have a payment plan,” says Real Development’s Michael Elzufon.

“I wish to God that were true,” says Jim McIntyre, the lawyer for Tax Adjustment Specialists.

“We had a deal,” McIntyre says. “They didn’t keep their word — again.”

In the process of preparing the lawsuit, McIntyre discovered Elzufon and partner Dave Lundberg let their corporate charters for several entities — including Real Development — expire.

The Real Development charter in Minnesota, where Elzufon and Lundberg are based, has not lapsed.

McIntyre says Kansas charters cost between $25 and $2,000 to maintain depending on the amount of real estate someone has.

Elzufon says the filing lapses are news to him.

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Tax Adjustment Specialists sues Real Development over $18,000

WICHITA — The $5.6 million mortgage that “Minnesota GuysDave Lundberg and Michael Elzufon recently received helped with one headache, but hardly all of them.

“We just paid out $5 million to cure all our problems at the (Wichita) Executive Centre two weeks ago, and now we’re working on the balance of the problems,” Lundberg says.

It’s not fast enough for Wichita’s Tax Adjustment Specialists, though.

Real Development, Lundberg and Elzufon’s company, owes the group about $18,000 for help with tax appeals a couple of years ago.

Tax Adjustment Specialists helped Real Development save about $61,000 by appealing to the county to lower appraisals on a few of its buildings.

That’s not in dispute.

There’s a court date Friday, though, over a civil suit Tax Adjustment Specialists filed in Sedgwick County District Court over lack of payment.

“We were supposed to be paid at that (loan) closing, and we weren’t,” says attorney Jim McIntyre, who is representing the tax group.

“They made a promise to us that if we sort of put things in limbo (while waiting for the loan) then we would be paid in full,” McIntyre says. “That hasn’t transpired.”

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Exchange Place LLC and DGL Investments LLC settle claim with Berkley Insurance

WICHITA — Exchange Place LLC and DGL Investments LLC have settled with their insurance company over 2007 damages by copper thieves to Exchange Place at Douglas and Market.

“It was extensive,” Real Development partner Dave Lundberg says of the damage, which he estimates was in the $10 million range. “Just about everything in the building, quite frankly.”

Real Development is developing the Exchange Place project.

A previously postponed trial was scheduled to start in Sedgwick County District Court on Tuesday.

Lundberg says he’s been in negotiations with Phoenix-based Berkley Insurance since the vandalism occurred.

“One of the things the insurance company said is, ‘You’re going to gut the building anyway.’ ”

Lundberg can’t discuss the settlement, though he says it was nowhere near what the damage was.

“It allows us to fix what has to be fixed in order to convert it to (a) residential project,” he says. “We’re going to wait until the project’s finally approved until we know what the final use is.”

Lundberg says the Exchange Place project is separate from Real Development’s Wichita Executive Centre project, which his company is refinancing in order to pay vendors.

He says the Exchange Place insurance money can’t be used on the other project.

Still, it’s a good start to the week for Lundberg, who has been sick with pneumonia for the past three weeks.

“We got an insurance settlement, and my pneumonia went away.”