A mixed-use development planned for Eastpoint hit a major snag last week when investors in the development filed suit against the project’s developers. 14 private investors and investment groups in the 31 acre PortHaven development filed a federal lawsuit last Thursday in the Arkansas Western District Court in Fayetteville, seeking a return of their 2.7 million dollar investment as well as punitive damages. Investors are accusing the developers of securities fraud for deceiving them from the beginning of the project and then providing bogus project updates that lured the plaintiffs into investing even more money. The suit says the $ 14 million dollar loan to buy the land is now in default. The suit names 21 defendants including Chambers Bank of North Arkansas, the Growth group, which originally brought the project to Franklin County, as well local resident Bruce Millender and Dirk Van Deen who acted as a spokesman for the project before the Franklin County commission. The project, in fact was before the commission in April of this year, where commissioners approved a number of comprehensive plan amendments to allow the development to move forward. That included allowing 10 residential units per acre – the project also promised a commercial district at its center and public access to the Apalachicola Bay.
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