Lbk developer loan request leads politicians to finger pointing - KCBD NewsChannel 11 Lubbock

5/16/10

Lubbock developer loan request leads politicians to finger pointing

By James Clark | email

LUBBOCK, TX (KCBD) – A Lubbock developer's request for a line of credit led elected officials to accuse each other of lying and leaving people out of important decisions.  The McDougal Companies agreed in 2006 to oversee a master plan development in Irving.  Recently, the Lubbock company requested a $2 million line of credit from the City, which did pass Thursday night but not without some controversy.  While Delbert McDougal has been in the hot seat more than once, this time it seemed to be the Irving City Council in the public spotlight, with Council members trading allegations back & forth. 

Meanwhile, a March 3rd article in the Dallas Morning News says McDougal has been at risk of default on $24 million of loans related to the Heritage Crossing revitalization project.  "That's not true," says Marc McDougal, who heads the real estate division of the company.  He says the Dallas Morning News relied upon statements from an outgoing council member who plans to challenge the Irving Mayor next year.  "Things are going well," says Marc McDougal. 

He says there was a snag in the financing when a bank wanted to raise interest rates on a potential $13 million loan.  But McDougal says the company and the city found a way around that issue by having the city finance the $13 million instead of the bank.  McDougal also says it's the city, not the company, that's ultimately on the hook for the loans.  

There is some Lubbock money in the project.  $2.65 million is backed by a loan from Vista Bank of Lubbock. 

Copyright 2010 KCBD. All rights reserved.

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