Updated
Development Group Member Also Has Role in Troubled Bradford College Condo Project
A failed bank president is among those asking Haverhill city councilors to accept two private streets as public ways. Magnum Partners LLC reports Magnavista and Perspective Drives will connect to a city sewer system in the vicinity of Gile Street.
A Magnum Partners member was also associated with the troubled Carrington Estates condominium project behind the former Bradford College.
The Federal Deposit Insurance Corp. banned John H. Pearson Jr., manager of Magnum Partners, from banking in 2011 because of his role in the failure of Butler Bank, Lowell. Pearson was also fined $225,000. The Massachusetts Division of Banks seized Butler Bank in April, 2010, and named FDIC as the receiver. People’s United Bank, Bridgeport, Conn, assumed deposits.
“(Pearson) has engaged or participated in violations of law and/or regulations, unsafe or unsound banking practices, and/or breaches of fiduciary duty as an institution-affiliated party of Butler Bank,” the FDIC said in legal papers.
Stephen J. Doherty, of Haverhill, is listed as a member of Magnum Partners. He is also manager of SJCD Realty Investment Group LLC, associated with the troubled 172-unit condominium project behind Bradford College. Brady Sullivan Properties, Manchester, N.H., later took over the property.
The Massachusetts secretary of state listed SJCD as a manager of Bradford V Development, Bradford College developer.
Collapsed Ornsteen Heel Development also Managed by Pearson
In 2004, Merrimack Towers LLC was created and then managed by Pearson. It received Haverhill City Council and Zoning Board of Appeals permission in 2006 to construct 183 multi-family housing units at the former Ornsteen Heel manufacturing site on Railroad Avenue. The city took possession of the property earlier.
During a city council hearing Aug. 22, 2006, Doherty testified in favor of the Merrimack Towers’ bid.
When the project did not commence the city began looking for a new developer last year. Merrimack Towers LLC was dissolved in 2009.
Acceptance of the Magnavista and Perspective Drives requires taxpayers to pay all future maintenance and repair costs, including utility work and snow plowing.