May 24, 2007

By Lauren Heaton

Questions remain unanswered about the new ownership and the funding source of Birch III, the residential housing development on the south edge of town. According to original owners Mark Bertke and Doug Eastham, the development changed hands last fall, although it’s not clear who currently comprises Purple Sage LLC, the limited liability company that owns the land.

But 36 lots in Birch III are still for sale and, after a hiatus, construction of the plat is moving ahead, according to Bertke.

Birch III is a 21-acre property zoned Residence A located between Glen View Road and Stewart Drive. In 2005, Dayton developer Eastham and mortgage company owner Bertke purchased the parcel from Antioch College under their firm Purple Sage, LLC. The company received Village approval to build 40 housing units, each expected to be from 1,800 to 2,200 square feet. Eastham was to market the properties, and Bertke was involved as the home loan officer through his company, Mark 1 Mortgage, located at 159 West Franklin Street in Bellbrook.

The developers completed the infrastructure for the entire subdivision, then called Glenwood Springs, and built a model home and one additional home.

However, in the fall 2006, a conflict about building and business practices caused Eastham to leave the partnership, Eastham said in a recent interview. He stated he did not want to be more specific regarding the issues between the former partners.

In a recent interview, Bertke described himself as the manager but not the owner of the development, and declined to name the current partners in Purple Sage, which is listed on the Greene County Auditor’s Web site as owner of the property. Bertke identified Chuck Crabill, who owns SugarTree Homes LLC, as a “member” of Purple Sage, but not as an owner.

Last month, the News became aware that the Chadwell-Townsend Private Foundation of Bellbrook was involved with financing Birch III. Bertke refused to provide any information about the foundation, saying that it had financed a second mortgage for Birch III and that he was not associated in any way with the foundation. The foundation has no Web site or telephone number.

But according to the foundation’s 990 tax documents, the Chadwell-Townsend Private Foundation shares the same address as Bertke’s Mark 1 Mortgage company. In addition, on the tax forms, Mark 1 Group is listed as the only contributor to the foundation’s assets, which, since 2003, have oscillated from as much as $2.8 million to as little as zero and then back up to $2 million, depending on the year.

Asked why his company shares the foundation’s address, Bertke said that he is the foundation’s manager but not a trustee. The tax documents list Dayton resident Betty Chadwell as the foundation’s only trustee.

The Chadwell-Townsend Private Foundation is registered with the Internal Revenue Service as a 501-C3 charitable foundation with “marital counseling” given as its mission statement. In a phone conversation, Bertke said the foundation’s mission was “housing.” On the tax documents, the foundation’s purpose is listed as “education.”

As of this spring, the development is going forward. According to Crabill, two new homes were added to Stewart Street. The newest home in the plat is a 2,000 square foot $329,000 ranch built as a model home for sale. Crabill is almost finished with another home of similar scale in the plat, which he began this spring for a couple who works in Yellow Springs.

The rest of the subdivision will be built according to plans approved by the Village, said Bertke, who continues to be the home mortgage representative for the subdivision. Keller Williams Advantage Real Estate is the Beavercreek real estate agency that is advertising and selling the properties, he said.

Contact: lheaton@ysnews.com