By Emily Ford
eford@salisburypost.com
SALISBURY — Miller Davis Development has defaulted on a $1.2 million loan from CommunityOne Bank, which is pursuing foreclosure of the Washington Building at 118 N. Main St.
Mike Miller, who owns the development company with his wife Gina Miller, as well as Miller Davis Inc., Salisbury’s largest advertising and public relations firm, said Tuesday he was not aware of the notice on foreclosure of a deed of trust, which was filed June 15 in Rowan County Superior Court. Miller Davis Development owns the Washington Building, the historic downtown landmark that Mike Miller restored in 2003 and 2004.
The tax value of the property is $516,664. Miller leases space on the first floor of the building to the new Ethos restaurant.
Miller acknowledged he has been trying to renegotiate the terms of his mortgage but said his advertising company is in good shape financially and has no plans to close.
“The business is fine,” Miller said.
The original promissory note from CommunityOne for $1,242,544 was secured by the deed of trust in June 2011. The loan included a line of credit.
With interest, fees and late charges, Miller Davis Development now owes the bank $1,269,109, according to a letter from CommunityOne to the advertising firm.
The bank demanded payment in full in February. John Fletcher, an attorney in Charlotte, was appointed in May as the substitute trustee to oversee the foreclosure, according to documents.
Miller said many businesses have struggled to make mortgage payments in the past four or five years during the economic downturn. He said his firm has clients and is paying its bills.
Miller Davis Inc. has 14 full- and part-time employees, down from 27.
Miller said he is represented by an attorney in Greensboro who has been negotiating with CommunityOne. He said he could not comment further until he reads the foreclosure notice.
A hearing is scheduled for 2 p.m. July 18.
Contact reporter Emily Ford at 704-797-4264.