By Justin Schneider, Herald Bulletin Online Reporter/Manager
March 04, 2009 01:15 am
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ANDERSON — Indianapolis-based developer C.P Morgan went out of business last week, but it left a lasting impression on Madison County.
Founded by Charles P. Morgan in 1983, the company built more than 25,000 homes in 200 communities in Indiana and North Carolina. More than 1,000 of those homes can be found in Madison County.
In 2001, C.P. Morgan began plans for the 823-home Summerlake housing development along Indiana 13 near County Road 800 West. Another 326 homes were planned for Prairie Hollow, along Indiana 67 near Ingalls, which is about two-thirds complete.
But C.P. Morgan left its legacy in other ways, too. In 2002, as part of the Summerlake deal, C.P. Morgan agreed to pay Green Township $1,000 per acre of development in Summerlake to fund fire protection.
“We got part of it based on every time they did a phase: phase one, phase two, phase three,” said Green Township Trustee Greg Valentine. “It was all put in an escrow account for Green Township fire.”
Last Thursday, Charles Morgan said he planned to shut down the company amid the slump in the housing industry, which he expects “will be in trouble for many months to come.” Morgan said that all homes under construction have been completed and home warranties will be honored. It seems C.P. Morgan followed through on its commitment to Madison County.
“The way it worked for C.P. Morgan at Summerlake, it was $1,000 an acre as they platted each section,” said Madison County Engineer Chuck Leser. “The number of acres listed on the plat told us how much they had to pay. We received the check before the commissioners signed the plat.”
As of Tuesday, the account balance stood at $134,180. From December 2002 through December 2005, C.P. Morgan submitted six so-called “quietus” payments, totaling $184,700. Through investments, the account has earned $24,480 in interest and in August 2006, Valentine made a $75,000 withdrawal to help fund fire contracts to Pendleton, Vernon Township (Hancock County), Lapel and Ingalls.
Homes in the high-density Summerlake development ranged in price from $90,000 to $200,000. Madison County Planning Director Cory Wilson said Summerlake is considered “built out,” meaning that no acreage remains for new houses.
The southern — and especially southwest — portion of Madison County has been the lone source of growth in recent years. Ivan Wagner, an educational consultant for South Madison Community Schools, reported that 1,600 homes have been built in Adams, Fall Creek and Green townships since 2000.
But C.P. Morgan’s fast-and-cheap development style also garnered resistance.
In 2003, the company attempted to start another development, Rafert Farms, along Indiana 13 just south of Summerlake, but the project failed to get off the ground. Utility work was done and C.P. Morgan agreed to a similar arrangement: pay $2,000 for each permitted lot to be divided equally between South Madison Community Schools, Madison County and Green Township.
“They never got to the platting stage,” Leser said. “They went down and moved the dirt. You can see where the streets are.”
Madison County Commissioner Paul Wilson, D-South District, said he fully expects another developer to take interest in the property and to honor C.P. Morgan’s agreement.
In February 2006, C.P. Morgan approached the town of Lapel with plans of building a 900-home addition, but an attorney discovered errors in the land annexation, effectively killing the development.
Contact Justin Schneider: (765) 640-4809, justin.schneider@heraldbulletin.com
C.P. Morgan leaves fire coverage legacy
Before beginning construction the 823-unit Summerlake housing development, C.P. Morgan agreed to pay $1,000 per developed acre to offset the cost of fire coverage in Green Township. Account history:
u Deposit (Dec. 17, 2002): $81,079
u Deposit (June 17, 2003): $23,940
u Deposit (Sept. 17, 2004): $46,370
u Deposit (Sept. 29, 2004): $4,338
u Deposit (Nov. 12, 2004): $16,993
u Deposit (Dec. 15, 2005): $11,980
u Interest (total): $24,480
u Withdrawal (Aug. 15, 2006): $75,000
Current balance: $134,180
— Source: Madison County auditor’s office
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