The on-again, off-again development of Magnolia, a 400-acre subdivision proposed for South Davis Road near Upper Big Springs Road, appears to be off again … for now.

Illinois-based Marquette Co., current option-holder on most of the property, is facing foreclosure on a $5 million debt to Bank of America.

LaGrange City Manager Tom Hall spoke with representatives of the company, who told him they want to buy back the property on better terms and said they still hope to get the 5-year-old project off the ground.

“Like a lot of real estate deals, values have changed because of the economy,” Hall said. “They still are interested in building the project.”

But a little more than five years into their proposed 10-year buildout, Magnolia has little to show for it. Utility pipes stick out of the unkempt and undeveloped grounds, bales of hay left sitting in dirt for months have weeds growing through them, and unfinished roads collect mud before they disappear into the underbrush.

An entrance leads into what should be the first phase of the proposed community neighborhood, but there’s no neighborhood. Not a single house has been built.

That’s not quite the 2,821-unit, 400-acre paradise - one of the largest developments in Troup County history - envisioned by the MarKent Co. in 2004.

“The project is not what they originally borrowed for,” Hall said.

Added into that, Magnolia’s ownership has shifted and changed, along with the project.

Here’s a rundown of what’s happened since the highly publicized 2004 cha-rette - a weeklong public education, planning and brainstorming session at DASH for LaGrange headquarters.

— 2004: Property was rezoned, charette held and development planning began.

— 2006: Utilities were laid for the first 90 homes planned.

— 2007: A rapid cooling of the housing market caused many builders to stop and rethink beginning projects, including the one in La-Grange. Differences developed between the two companies making up the MarKent Co.: Marquette led by Bruno Bottarelli and the Kentlands Inc. under Joe Alfandre. The Kentlands Inc. attempted to buy out Marquette’s interest in MarKent and partner with Virginia-based Republic Land Co. to finish the development. The buyout failed, and Marquette became the primary developer.

— 2008: With little work completed, Marquette brought in Bigelow Homes Inc. to build some entry-level homes. Bigelow Homes, a developer of communities similar in scope to Magnolia, like HomeTown Aurora in Illinois, was “given” 183 acres to develop in the same way as Magnolia.

— 2009: Bigelow backed off developing the land. Marquette Co. and Bank of America initiated foreclosure proceedings. The legal notice of the “sale under power” ran for the first time Sept. 11 and for the final time Friday.

At the time of the deal the developers optioned the entire 270 acres of city-owned property with plans to buy 10 acres at the time. The remaining property was to be acquired from the Mallory family. So far, however, Marquette has purchased just 30 acres - 20 from the Mallory portion and 10 from the city. Nothing has been purchased in two years, Hall said.

“Until they develop what they’ve got, they don’t need an option on the Mallory property,” he said. “… (Magnolia) had a tough time getting started, but we’ll see.”

For the city, the foreclosure of the property is solely between Marquette and the bank. However, if the project never develops, the city doesn’t sell its interest in the land.

Currently zoned for mixed use, the property has a very specific purpose, Hall said - a combination residential, commercial and others. If the development falls through, the city will have to find someone else to build the exact same type of product or ask City Council to rezone the land.

“I guess a lot depends on whether it forecloses and whether or not they’re able to get the property back under foreclosure,” Hall said.

Otherwise, “We’ll have to do something else with the land.”

Hall said city officials are optimistic that the development will go forward.

“At the end of the day, the value of residential real estate has changed,” he said. “… The economy will get better. We’ll just have to see.”

Trey Wood can be reached at twood@lagrangenews. com or (706) 884-7311, Ext. 228.