The developer looking to purchase the old Aiken County Hospital is facing foreclosure on his other Aiken County project.
The company that loaned Tracey Turner and his development company, Turner Development, $1 million to purchase the former Haskell Dairy Farm filed suit against Turner and the company March 15.
Fuse 10 LLC, through Charleston lawyer Mark Sharpe, alleged that Turner Development had failed to pay back most of the loan. It asked the court to enter judgments against Turner and Turner Development and to foreclose on two of the former dairy farm properties.
Fuse 10 is a Delaware company that is a subsidiary of the Fuse Group, which is a real estate lender based in South Florida.
Sharpe and Alex Fraynd of the company declined to comment on the lawsuit.
Turner did not answer a phone call or return a voicemail left seeking comment.
The former dairy farm is located on the northeast corner of the intersection of the Jefferson Davis Highway and Old Aiken Road near North Augusta.
Turner said in 2021 he plans to transform it into a mixed-use development named Weeping Willows that will feature 418 residential lots, stores, a beer garden and event space for weddings and parties.
Turner and his company have a pattern of entering into short-term, high-interest loans to fund projects. He has faced several lawsuits in Washington, D.C., over alleged failures to repay those loans. In some of these lawsuits, it's alleged that after the initial repayment date passes, Turner will promise more money in exchange for additional time to pay off the loan.
Turner said last year that failing to repay loans happens in development.
"With us being so early in it (forming a company), in negotiating, we didn't negotiate properly," Turner said. "Now, we have lawyers. We have three lawyers on staff that really discuss our investment changes. It's no longer me meeting with friends. It's investment packages."
Turner said lawsuits happen in developments, especially when schedules aren't met and deadlines are moved.
"Investors don't care about weather, they aren't worried about stuff like that," Turner said. "They want their money. And the only way to do it is, if they don't get what they want, they know the last thing I would want is a lawsuit so it makes me sit down and talk to them."
The pattern continues
According to Fuse 10's lawsuit, the pattern continued with the Weeping Willows development.
Turner, as managing member of Turner Development, signed an agreement to receive a $1 million loan on Feb. 21, 2021, the same day the company purchased one of the former Haskell Dairy Farm properties. Turner also signed an agreement personally guaranteeing the loan.
The terms of the agreement called for Turner Development to make interest-only payments — the interest rate was 11% — from April 1, 2021, to and including Feb. 1, 2022. On Feb. 12, 2022, Turner was to make a final payment of all principal ($1 million) plus any remaining interest and fees.
Turner Development paid $202,721.21 in interest and $180,000 in principal.
The loan agreement was amended May 20, 2022 to increase the amount Turner owed to $1.18 million and the time he had to repay the loan to Aug. 12, 2022.
On Aug. 12, 2022, Turner Development and Fuse 10 entered into a forbearance agreement increasing the amount owed by $86,223.98 and extending the due date to Aug. 8, 2023.
A forbearance agreement allows mortgagees to pause payments to deal with a financial hardship. Such agreements come at a cost, though. Some of the interest is added to the principal.
On Dec. 8, 2023, Turner Development and Fuse 10 entered into another forbearance agreement moving the due date to March 8, 2024.
The remaining balance is $1.08 million.
The Case Company of South Carolina, the South Carolina Department of Revenue and the South Carolina Department of Employment and Workforce are also listed as defendants in the lawsuit.
Case has a mechanic's lien in an unspecified amount.
The department of revenue has three tax liens (the tax type is listed as withholding) on the properties totaling $10,377.42.
The department of employment and workforce has three liens on the properties totaling $2,161.83.
Old Aiken County Hospital
Turner is also in the process of acquiring the old Aiken County Hospital.
The Aiken County Council voted June 20, 2023, to authorize Chairman Gary Bunker to enter into an agreement to sell the property located at 828 Richland Ave. W. to Turner for $950,000.
Under the terms of the agreement, Turner has until March 31 to complete the transaction.
Turner told the Aiken City Council last August that he wanted to "bring in" the closing date to the next few weeks and move forward with the project.
Those few weeks went without a closing date.
Aiken County Administrator Brian Sanders said March 5 that Turner planned to close on the property March 27.
The closing is still scheduled for 10 a.m. March 27, a county official said Tuesday afternoon.
