WAUKEE, Iowa — The developers of an embattled 55+ housing community in Waukee are still in troubled waters after their bankruptcy case was dismissed in federal court.
Jeffrey and Tina Ewing, who own Pella-based development company Ewing Properties, filed for Chapter 11 bankruptcy on March 5.
As of Wednesday, that attempt officially failed: federal court documents show that the Ewings and their attorneys failed to submit required financial reports and other documents, all of which are grounds for dismissal.
Private equity investor David Vawter was one of hundreds who saw the potential of the Estates of Waukee development, contributing tens of thousands of dollars to the cause. According to Vawter, the minimum investment requirement was $50,000.
“It was brought to me by a friend from college, as an opportunity," Vawter told Local 5. "We were looking to park some money someplace for a little bit."
Now, the return on that investment could come up short.
After the Ewings filed for bankruptcy, the long list of nearly 250 investors, contractors and buyers hoped that some money could be recouped in the future, though there was no guarantee.
"This presented itself as a safe, short-term investment opportunity. Other people have hundreds of thousands of dollars invested in what they thought was going to be their final resting place," Vawter said.
With the case now dismissed, the odds of getting any money back are even slimmer.
In a statement to Local 5, Waukee Community Development Director Andy Kass said city staff "are aware of and continue to monitor the situation regarding the Estates of Waukee development."
Kass added, "If the building permits for these homes expire prior to completion of the homes or if there are conditions present on-site where they could be considered a hazard to the general public, the city would then work with the property owner and/or developer to address and mitigate any issues."
The Ewings' attorneys, Austin and Bryant Parker, told Local 5 in a previous statement:
"It is our intent to circulate comprehensive plans of reorganization concerning each affected area that work to secure each resident in their homes, maintain the high construction quality for which each of these communities have become known for and maximize dollar returns to not only our construction lending partners but to the broader list of creditors that have believed in each of these projects."
They did not respond to Local 5's request for comment Thursday.
The Ewings also have communities under construction across Iowa and in other states, like Missouri and South Dakota. With no current plans to finish construction, the future of each and every one of the developments is completely unknown.
Local 5 will update this story as more information becomes available. Download the We Are Iowa app or subscribe to Local 5's "5 Things to Know" email newsletter for the latest.