A Kansas City home builder is facing federal indictments, leaving a St. Joseph neighborhood in limbo.
F. Jeffrey Miller owns Star Land & Development. The development company owns about 86 undeveloped properties in Thousand Oaks, a subdivision between Riverside and Leonard roads in southeast St. Joseph.
Mr. Miller is awaiting trial in a $25 million mortgage and loan fraud scheme. He faces eight counts of conspiracy, bank fraud, money laundering and criminal forfeiture. He was initially indicted on more than 70 counts of federal charges in 2006 stemming from alleged crimes between 1997 and 2004, according to a federal indictment. Several codefendants have pleaded guilty, but Mr. Miller and four business associates are still waiting for trial. No trial date has been set.
“It’s very upsetting to me that a man federally indicted still owns land up here by me,” said Steve Timmons, who lives in Thousand Oaks. “We’ve always been intrigued by it all.”
Mr. Miller started two companies, Miller Enterprises and Star Land & Development, that were among the top area home builders in 1999 and 2000, according to the federal indictment.
Federal prosecutors accused Mr. Miller of conspiring with others to prepare falsified loan documents for low-credit consumers looking to own homes. According to the indictment, the companies also provided down payments and closing costs to customers without the lender knowing, and then raised the sales price of the houses at closing.
While none of the charges involve Thousand Oaks or its neighbors in a legal sense, the proceedings have caused a halt in developing the rest of the neighborhood.
“It’s just undeveloped and this land cannot be developed until (the legal process) is all done,” Mr. Timmons said. “He can’t sell any more and it’s on a lot of homeowners’ minds.”
Star Land sold other lots in the area to local builder Jeff Harris. Those lots have been developed and sold to local homeowners.
Mr. Timmons met with some city officials and City Council members to discuss the issue of city maintenance in the area. Residents of Thousand Oaks, which is within the city limits of St. Joseph, pay city taxes but do not receive city maintenance, according to Mr. Timmons and neighbors. Complaints range from street upkeep to street lights. Mr. Timmons said that Mr. Miller made a previous commitment to the city to add sidewalks and other infrastructure but since the legal battle began, Star Land has not been active.
Yet last week, the company managed to fork over $36,171 in back property taxes owed to Buchanan County for unpaid taxes on the 86 properties in the subdivision. The company also owes about $14,000 for city crews to mow the 83 of the 86 properties.
Steve Hofferber, city director of property maintenance, said that last year the department sent notices to Star Land regarding property maintenance. Mr. Hofferber said the company mowed the empty lots last year.
“This year, before we mowed, we sent notices and we called,” he said. “The owner never called us back.”
Due to the size of the properties in the subdivision, Mr. Hofferber said the city had to borrow equipment to manage the job. When the grass became unruly again, the city sent out another round of letters. This time, the company mowed the property. Each time, Mr. Hofferber said he was in contact with Mr. Miller.
“We’ve never been in contact with anyone else,” he said.
As for the unpaid bills, Mr. Hofferber said the city will send two collection letters and can eventually follow a lawsuit after Dec. 31.
Jennifer Hall can be reached at jennhall@npgco.com.
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