A significant legal dispute has emerged in Greenfield, involving a local developer and a prominent banking institution. The lawsuit, initiated by the Greenfield Banking Co., accuses Greenwalt-MKP LLC and associated entities of defaulting on nearly $7 million in construction loans. The case centers around properties within the McKenzie Plaza Shopping Center, particularly those housing ACE Hardware, McAlister’s Deli, and Forum Credit Union. Despite the ongoing litigation, the businesses involved maintain their valid leases and continue to operate without disruption.

Construction Loans Default: A Financial Crisis Unfolds

The financial turmoil began when Greenfield Banking Co. (GBC Bank) filed a lawsuit against Greenwalt-MKP LLC, Greenwalt Development Group LLC, and Richard Lynn Greenwalt. According to court documents, GBC Bank is seeking to foreclose on the properties tied to two defaulted construction loans totaling nearly $7 million. The bank aims to sell these assets to recover its losses. The affected properties are part of an extensive redevelopment project at McKenzie Plaza Shopping Center, which has been ongoing since 2015.

The origins of this dispute can be traced back to July 2022, when GBC Bank extended a construction loan of $3.65 million to Greenwalt-MKP. This was followed by a second loan of $2.57 million in August 2022. By June 2024, both loans were in default, with outstanding balances reaching $3.7 million and $3.06 million, respectively. As of January 2025, the combined balance due on both loans stood at $6.77 million, with interest continuing to accrue daily. GBC Bank's complaint outlines the various amendments and forbearance agreements that were made in attempts to rectify the situation, all of which ultimately failed. The bank now seeks judgment for the total sum owed, along with attorney fees and other damages.

Impact on McKenzie Plaza: Business Continues Amidst Legal Strife

Despite the legal challenges, businesses within McKenzie Plaza Shopping Center remain operational. The shopping center, home to several well-known establishments like Great Lakes ACE Hardware, McAlister’s Deli, and FORUM Credit Union, continues to serve its community. The lawsuit specifically targets the properties associated with ACE Hardware and the building housing McAlister’s Deli and the credit union. However, the legal proceedings do not interfere with the day-to-day operations of these businesses, as they hold valid leases.

The development company, Greenwalt Development Group LLC, was founded in 2013 by R. Lynn and R. Aaron Greenwalt to pursue retail and mixed-use projects. McKenzie Plaza has been a key focus of their efforts, with the expansion and redevelopment project spanning from 2015 to 2023. The shopping center includes additional tenants such as Jimmy John’s Gourmet Sandwiches, Don Rigo Mexican Grill & Bar, and an AT&T store. While the legal battle unfolds, the developers have chosen not to comment on the matter, citing the pending litigation. For now, the future of the affected properties remains uncertain, but the businesses within McKenzie Plaza continue to thrive amidst the uncertainty.