Another lawsuit filed against Kruse

AUBURN, Ind. (WANE) - A local bank in LaGrange has filed a lawsuit against the foundation operated by auctioneer Dean Kruse for failing to make payments on a $2.5 million loan.

According to KPCNews , Farmers State Bank of LaGrange filed papers earlier this month seeking foreclosure on a mortgage on the Dean V. Kruse Foundation building off I-69 outside of Auburn.

Court documents obtained by KPC state the foundation took out a $2.5 million loan in April of 2009 to build the Andy Granatelli Museum and Hall of Fame building. The foundation refinanced the loan in May of this year but has not made a payment. The bank says they are owed $2.55 million.

The property at stake is 28-acres of land west of I-69 that contains the National Military History Center and Granatelli Museum. The Granatelli building was the reason for the loan. It was completed but has never opened. According to the KPC article, Granatelli wants the building closer to Indianapolis Motor Speedway.

Kruse said the larger museum is not really at risk.

"They're just trying to protect themselves," Kruse told KPCNews.

An attorney for the bank said they hope it can be "made whole" and that everything can be worked out.

Additional collateral on the loan includes three automobiles, a turbine engine, and other memorabilia that Granatelli gave to the foundation to display in the museum.

Loan documents state the appraised value of those items to be between $1.3 million and $1.6 million.

The lawsuit asks a DeKalb County judge to order a sale of the foundation's property to help cover the debt.

A separate lawsuit is expected to be ruled on this month that could order a sheriff's sale of more than 100-acres of undeveloped land. Proceeds would help pay $8.5 million in personal debt held by Kruse to a Kansas bank. A DeKalb judge is expected to rule Nov. 29, although Kruse has asked for a delay.