Farmers State Bank has filed two lawsuits against developer Mark Samarrai of Manhattan and his companies, claiming he owes in the neighborhood of $2 million, according to court documents.
Farmers State Bank on Friday filed the suits in Riley County District Court.The first suit is against Plaza West Strip shopping center and its owner, Samarrai, for failing to pay back a $2 million mortgage that was taken out in March 2012 with a payoff date in 2017.
In the suit, Farmers alleges Samarrai has failed to make on-time or complete payments. The suit states the loan has been in default since June. (A payment for the agreed upon monthly amount of $13,758 was paid in September, after the due date, but it did not include missed payments, late fees or interest also owed.) The bank is seeking about $1.9 million plus interest and late fees accrued since September.
The bank also requested it be paid the rent from the tenants and that a third party hold the shopping center. Because the tenants will be affected, they have also been named in the suit. Those are Golden Wok Chinese Buffet, La Hacienda, Konza Law LLC, and The Patio.
The second suit concerns two residential properties owned by S and S Real Estate Development Inc., also owned by Samarrai.
Farmers alleges the mortgage on the property at 115 Harvard Place, Manhattan, has been not paid since June.
The original mortgage of $250,000 was taken out in 2008 with a payoff date of October 2013, but in 2010 a second mortgage was taken out on the property for $40,000.
Farmers is seeking about $213,000 in unpaid principal, interest and late fees.
The tenants named in the second suit are Midstate Mechanical Inc., Bamford Fire Sprinkler Company Inc., Siam 99 Inc., d/b/a Aroy Thai Cuisine, Nirandorn Khampira and Jiriya Khampira.
The second suit also seeks foreclosure on the property at 3105 Arbor Drive in Manhattan. A $200,000 loan was taken out Nov. 30, 2012.
Farmers alleges that the loan has not been paid since May. The bank has requested a total of $202,000 plus interest and late fees.
As with the suit against the Plaza, Farmers claims the defendants have failed “to make payments on time and in amount due.” In this case, no concessions were requested of the tenants to make rental payments to the bank, but the bank did request the properties be held by “a third party.”
The Mercury has been unable to reach Samarrai.