First State Bank of Northwest Arkansas filed a foreclosure lawsuit Wednesday against troubled developer Brandon Barber and Lynnkohn LLC.
The debt is secured by property where Barber planned to build his Divinity on Dickson, a highrise hotel and condominium project.
The bank also named Seth and Laura Kaffka in the lawsuit because they guaranteed the debt, which originated in August 2006 as a $5.1 million loan through ANB Financial, which failed in 2008. First State Bank acquired the note though an assignment from the Federal Deposit Insurance Corp., according to the complaint.
Barber had planned to build a 15-story building with a hotel, restaurants, stores and condos, but the project was scaled back to 10 floors with 84 condos.
The Fayetteville Planning Commission denied the project in June 2006, but the Fayetteville City Council the next month approved the developer’s appeal to build the project, according to city officials.