City Center II is a $116.4 million mixed-use downtown development slated for the corner of Abbot Road and Grand River and Evergreen avenues.

Recently, seven properties that are a part of the City Center II project went into temporary foreclosure because of unpaid property taxes and defaults on a loan agreement, said Eric Sanko, vice president of special assets of Huntington National Bank.

This is not the first time this has happened to Strathmore. A development in Bear Creek, Mich., went into foreclosure in March. Emmet County documents show National City Bank filed for foreclosure against Strathmore’s Bear Creek properties.

“This is a project unrelated to City Center and part of an overall restructuring of the National City Bank debt that has been settled and is in the process of closing,” said Scott Chappelle, the head of Strathmore Development Company, in an e-mail.

Other documents from Emmet County show Strathmore owes more than $51,000 in property taxes for part of the Bear Creek development, with some delinquencies dating to 2000.

The Bear Creek development has experienced problems before the 2009 foreclosure. The company placed lawsuits on both the township and the sewer authority of Bear Creek, citing it had faced delays in obtaining land-use approvals and sewer connections. The sewer authority was dismissed in the fall as having done nothing wrong, said Stephen Tresidder, an attorney representing the sewer authority. However, the decision is being appealed and will go to the Michigan Court of Appeals.

“Nobody’s ever found that we inappropriately delayed anything once we knew we had to extend the capacity by the time it needed to be extended,” Tresidder said.

Chappelle sent out a press release Wednesday that stated many of the company’s projects are going well, and some have come to fruition. The release included a passage stating Strathmore had completed the construction and delivery of a municipal water well project for the city of Petoskey. However, Alan Terry, Petoskey’s acting city manager, said Wednesday the company has a water well the city is interested in buying but has not purchased.

“It’s a well he had drilled years ago and we are looking to purchase it from him,” Terry said. “We have not bought it, no.”

Chappelle said he closed on the deal with the Petoskey City Council on July 22. He added that anyone in the city who did not know of the deal was uninformed.

“The terms of the purchase are outlined in various meetings of the Petoskey City Council,” Chappelle wrote in an e-mail.

Elsewhere, the company faces other foreclosure woes. In Bonita Springs, Fla., a shopping center faced two foreclosure suits earlier this year. Tax records from Lee County, Fla., show the company owes a combined $53,520 for both 2007 and 2008 property taxes.

Strathmore bought the center to remodel it, but Bonita Springs Planning and Zoning Manager John Dulmer said the project has stalled.

“I don’t know what their plans are, but they haven’t gone forward,” Dulmer said.

Another stalled project is an Ann Arbor development, Broadway Village. The development broke ground in January and has not moved forward. Ann Arbor City Planner Alexis DiLeo said the proposed project called for specific zoning requirements.

“It was complicated, but most of those issues were all eventually worked out and it was approved,” DiLeo said. “Someone else could still come in and start the site and start building.”

Despite all this, East Lansing officials expect ground to break on the City Center II project sometime this fall.

“It’s clearly been delayed a little by the financial state we’re in,” City Manager Ted Staton said.