ESL Federal Credit Union is foreclosing on a property owned by Bob Morgan, the local developer accused of defrauding lenders out of millions of dollars.

The lender said Morgan wasn't making payments.

The site is property on Fairwood Drive south of Rochester Institute of Technology off East River Road. It currently houses Rivers Run Senior Living and Osher Lifelong Learning Institute. 

In court paperwork, the credit union says it's calling in a combined lien on the two mortgages, saying a combined amount of about $17.7 million had yet to be repaid.

An ESL spokesperson said after all options were exhausted to work with Morgan, the credit union believes the foreclosure protects the property’s value.

Henrietta Town Supervisor Steve Schultz is concerned how this all affects residents living at the property's senior housing complex.

“Before I took office they started converting this to, essentially, market rate apartments and in the process they got rid of all those amenities. There are a lot of people townhouses underwater – their sell value without those amenities is lower than what they currently have in mortgage,” said Schultz, who hopes a potential new buyer considers residents.

“I’d hope to have them restore some of those amenities so that those homeowners can get the value out of their townhouses,” he added. 

Morgan faces federal charges including wire fraud and money laundering. Prosecutors say he worked to defraud financial institutions and government agencies out of millions of dollars.

RIT declined comment on the fate of the Osher Lifelong Learning Institute.

Buckingham Properties has taken over managing all of the luxury apartments in Tower 280 in the former Midtown Plaza site in downtown Rochester. It was already responsible for the first three floors of the East Broad Street building.

The previous management group, Grand Atlas, has ties to Morgan.