McKee's Northside Regeneration responds to lawsuit over unpaid loans
The company with ambitions to bring St. Louis' north side back to life is responding to a lawsuit filed Monday in St. Louis County that alleges Northside Regeneration defaulted on loans and owes more than $17 million.
Paul McKee's company released a statement Friday that said the suit, filed by Titan Fish Two LLC, was meant to "embarrass" Northside.
Titan Fish Two alleges in the suit that Northside Regeneration defaulted on loans with Corn Belt Bank and Trust Company in 2007. Kansas City-based Titan Fish Two acquired the notes in March of this year.
The lawsuit says the guaranties on the loans allow the creditor to get up to 35 percent of the outstanding debt, or about $6 million with interest. It also asks the judge to appoint a receiver for 400 parcels of land within Northside Regeneration's project footprint.
In its statement, Northside Regeneration said "the vast majority of the Northside Project will be unaffected by this action." It also said most of the land is vacant and awaiting redevelopment, and there is little a receiver could protect.
Some of the parcels that could go into receivership are within the proposed site for the National Geospatial-Intelligence Agency, a federal agency the city is trying to lure to north city. In an email statement, Kyle Binns, an attorney for Titan Fish Two, said the company is supportive of the city’s plans for the NGA site and doesn't anticipate the legal action will affect the city’s ability to purchase the property.
Titan Fish Two also filed suit against Paul McKee’s McEagle Properties over a $2.5 million loan from Corn Belt in 2008.
A St. Louis Public Radio investigation this week revealed Northside Regeneration owes more than $750,000 in property taxes to the city of St. Louis.
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