A stalled-out economic development project worth $65 million in Chesterfield County is now heading for a court-ordered auction. The project, an unfinished manufacturing facility at Meadowville Technology Park, was left incomplete by Mexican packaging company Cartograf. While a last-minute legal filing has been made to halt the auction, it remains unclear whether it will be successful. The auction is scheduled to take place later this week, both online and in person.
The Cartograf project was initially announced in 2019, in collaboration with the Ralph Northam administration and Chesterfield County. The plan was to build a folding and micro-corrugated package printing plant, creating 63 new jobs. The company purchased the site from the Chesterfield Economic Development for $7.5 million in the same year and construction began shortly after. However, the project has faced numerous legal disputes since then.
The general contractor for the project, Choate Construction Co., filed a lawsuit against Cartograf in 2020, claiming a payment of $15 million for their work on the first phase of the factory. According to Choate, they had nearly completed their work but were not paid by Cartograf. In response, Cartograf disputed the completion of the agreed-upon duties by Choate. Additionally, Texas-based Comerica Bank, which financed the project, sued Cartograf in 2021 after the company defaulted on a loan. A federal judge ruled in favor of the bank, allowing them to collect $9.7 million in principal along with interest and fees.
In November, the Chesterfield Circuit Court ruled that a sale was necessary to satisfy the liens on the property held by both Choate and Comerica. Consequently, the auction was scheduled to proceed. However, Cartograf recently filed a motion for a temporary injunction to halt the sale, arguing that the appraisals of the facility undervalued the property. They claimed the property is worth between $25.2 million and $29.4 million, whereas the auction house listed its appraised value at $18.9 million. The outcome of Cartograf’s injunction request remains undecided as of now.
Should the sale proceed, it will be subject to court approval. Mark Motley, CEO of Motleys Asset Disposition Group, the company handling the auction, believes the property is an attractive opportunity for a manufacturer or data center user. The site is zoned for general industry use and has the necessary infrastructure in place. The incomplete plant spans around 284,000 square feet, slightly larger than the initially planned 275,000 square feet.
The Cartograf project was originally eligible for a $750,000 grant from the state’s Commonwealth Development Opportunity Fund, as well as support for employee training programs through the Virginia Jobs Investment Program. However, Cartograf did not receive any funding or benefits from these programs.
With the auction looming, the future of Cartograf’s unfinished facility at Meadowville Technology Park remains uncertain. The outcome of the legal proceedings and the subsequent sale will determine the next steps for the property, which has the potential to attract a new buyer interested in completing the project and utilizing its industrial potential.
