Yucaipa acquires land after $4.5 million loan defaults

The property the city purchased in December 2023. (City of Yucaipa/Submitted) Yucaipa acquired approximately 80 acres of vacant land off Oak Glen Road through foreclosure in October after a $4.5 million loan to Koy Builders Inc. went into default. It left questions about the original lending terms, the property’s value and the financial implications for taxpayers. Michael Kooyman, owner of Koy Builders, and the property, died by suicide. Records reviewed for this story do not establish a connection between his death and the loan. The city council approved the loan in December 2023, under a different city manager (Chris Mann) and council (Justin Beaver, Chris Venable, Jon Thorp, Matt Garner and Bobby Duncan), agreeing to lend Koy Builders $4.5 million at a fixed annual interest rate of 7%. The loan was secured by a deed of trust on the property, and the city also obtained an option to purchase it for $5.475 million.

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