SUBCONTRACTORS ON HOTEL FILE LIENS TO RECOUP UNPAID BILLS

SUBCONTRACTORS ON HOTEL FILE LIENS TO RECOUP UNPAID BILLS

Postby ROGERSETTLER » Fri Mar 05, 2010 12:13 pm

Local News
030410 LOCAL NEWS 1 Lubbock Avalanche-Journal
Five subcontractors on the Pioneer Hotel renovation project say they’re owed more than $400,000 for work they’ve done so far, according to records on file in County Clerk Kelly Pinion’s office.


Subcontractors on old hotel renovation file liens to recoup unpaid bills
By Walt Nett | Lubbock Avalanche-Journal
Thursday, March 04, 2010
Story last updated at 3/4/2010 - 12:42 am

Five subcontractors on the Pioneer Hotel renovation project say they’re owed more than $400,000 for work they’ve done so far, according to records on file in County Clerk Kelly Pinion’s office.

At the same time, there’s been no activity on the old hotel property at 1204 Broadway for several weeks.

Mike McDougal, president of the McDougal Cos.., said the liens are being worked out, and work on the hotel is on hold while he negotiates with a potential tenant for some of the retail space planned for the hotel’s first floor.

Working things out with that potential tenant would affect elements of how the lobby is ultimately laid out, McDougal said.

“Knowing who that tenant’s going to be will have a huge impact on marketing,” McDougal said, adding potential condominium buyers would probably be less interested in buying without knowing who will be on the ground floor.

The five have filed liens totalling $433,196 against Mc & Mc Properties, the McDougal Cos. subsidiary that bought the hotel in 2005, seeking payment for bills ranging from $27,376 to $189,162, according to documents reviewed by The Avalanche-Journal.

Under Texas law, unpaid subcontractors on commercial construction work must file liens against the property about four months after the billed amount is due.

According to the McDougal company’s Web site, plans call for a multi-use renovation, with condominium apartments on the third through 11th floors. The hotel’s two original second-floor ballrooms are also scheduled to be revived, along with offices.

McDougal said this week the company, which originally had planned to have offices on the third floor, will build condominium units on the two wings.

That change could add as many as four apartments to the 29 originally intended for the building.

The condominiums are almost ready for sale, McDougal said.

“We just need the sheetrock and carpeting,” he said. “The plumbing is in; the air conditioning is in. Most of the electrical work is done.”

The McDougal family bought the 81-year-old structure out of foreclosure in 2005 for about $6.1 million, then bought and razed the former Yellowhouse Masonic lodge to the north of the hotel for construction of a parking garage.

In previous Avalanche-Journal stories about the project, Mike McDougal said the cost of the project would run at least $10 million and could approach $15 million, partly because of unexpected costs.

For example, none of the 550 windows were framed identically. That meant the renovations required new custom windows of energy-efficient glass.

In addition, workers found more than twice as many holes in walls as they had expected.

The building was vacated in 1994 after two owners operated it for the previous 19 years as a retirement hotel and senior citizens’ residence.

To comment on this story:

walt.nett@lubbockonline.com l 766-8744

charles.reinken@lubbockonline.com l 766-8706


Reader Comments

+ 2 Rating (This comment was rated +1.) Posted by: aquaman at Mar. 4, 2010 at 6:32:34 am
Seems that McDougal needs to pay up, doesn't matter who the tenant is or if there is a tenant. Pay for the work contracted.

+ 2 Rating (This comment was rated +1.) Posted by: jeffross at Mar. 4, 2010 at 7:08:59 am
Will five liens for over 400Kbucks hurt Mc&Mc's credit rating, or are the liens just an expected cost of doing work for some of the richest folks in the region?

And four months over due? Wonder how things would be if somebody owed THE MCDs that much money and were over due by over four months. I guess the rules are different if you already have lots of money, than if you don't.

I wonder what the price of recycled bronze is. Maybe the lien holders can melt down a couple of statues and get part of their money.

Oops, I forgot, those are Idols to Lubbock's god of green and gold. Can't blaspheme against them.

+ 2 Rating (This comment was rated +1.) Posted by: RBRB1 at Mar. 4, 2010 at 7:59:10 am
Looks like Mayor Martin needs to come up with some way for the City of Lubbock to "help" the McDougals again .....

+ 2 Rating (This comment was rated +1.) Posted by: DidjaHear at Mar. 4, 2010 at 8:11:34 am
Hmm - the old Pioneer - Thin tires on red brick streets; hats on every head; common courtesy; a cooler breeze on the shadowed side.
Times change. Reckon $21 mil's gonna improve all that much?




+ 1 Rating (This comment was rated +1.) Posted by: herald at Mar. 4, 2010 at 8:45:28 am
Let's hope the interior decoration isn't as garish as the amazingly tasteless McDougal Hotel across from the football stadium. The old Pioneer was a classy place.

+ 1 Rating (This comment was rated +1.) Posted by: 1stooge at Mar. 4, 2010 at 9:30:46 am
Might as well re-name the Pioneer to 'McDougal Hotel'.

+ 1 Rating (This comment was rated +1.) Posted by: Mercaptan at Mar. 4, 2010 at 10:05:38 am
JeffRoss, the more you write, the more sarcastic you get. I think I'm starting to like you. I even find myself giving you some + ratings.

+ 1 Rating (This comment was rated +1.) Posted by: Rojo59 at Mar. 4, 2010 at 10:43:02 am
How much is it going to cost to live in this McDougalville? Also, if the McD's are so fired up about renovating the downtown area, why did they build their Taj Mahal corporate office building on 50th and west loop 289? They should have put their money where their mouth is and built it downtown if it's such a great place to be living and doing business. A fool and his money are soon parted. Beware the new McDougalville.

(This comment was rated +1.) Posted by: frogdodgeitcom at Mar. 4, 2010 at 10:46:35 am
The macdaddyDoug's have never run a clean organization. Not a good outfit to contract for. The used to get money under the table back from the contractors doing work for their real estate sellers without the buyers or sellers knowing the back door payment arrangement, or the board of realtors knowing either.

+ 1 Rating (This comment was rated +1.) Posted by: RalphBauer at Mar. 4, 2010 at 11:23:01 am
Whew!!! Thank goodness there's finally some McDougal news. What with all of those pesky elections last week, there was a great deal of McDougal withdrawal going 'round.

-2 Rating (This comment was rated +1.) Posted by: RalphBauer at Mar. 4, 2010 at 11:53:30 am
BTW Mercaptan, I agree with your statement about old Jeff 100%.

(This comment was rated -1.) Posted by: melmcree at Mar. 4, 2010 at 11:57:30 am
The city government takes a lot longer to pay bills than 4 months and it's nice to see someone taking a risk in revitalizing the downtown area rather than building a new shopping center or housing development in a cotton field in SW Lubbock. Kudos to anyone trying to keep downtown Lubbock from cratering.

+ 1 Rating (This comment was rated +1.) Posted by: jeffross at Mar. 4, 2010 at 2:04:12 pm
Ah. The McDougalites are starting to come out.

+ 1 Rating (This comment was rated +1.) Posted by: snowjack59 at Mar. 4, 2010 at 2:11:02 pm
well they made the city buy exel, now they will be applying for goverment assistance to finish and get the mayor to help them!!!! once again city will be paying thier bills. watch out election candidates, they may have written ya a bad check!

+ 1 Rating (This comment was rated +1.) Posted by: area61 at Mar. 4, 2010 at 3:02:54 pm
The subcontractors should send their bills to City of Lubbock, in care of Mayor Tom Martin. That way they will get paid.

Who the hell wants downtown revitalized? Nothing but bad memories down there. Let that dog die.

+ 1 Rating (This comment was rated +1.) Posted by: area61 at Mar. 4, 2010 at 3:13:11 pm
BTW

You notice that the McDougals never say if and when they're gonna pay up? They're waitin for a tenant to pop up! Jeff Ross, I agree with your statement.


+ 2 Rating (This comment was rated +1.) Posted by: prtzel at Mar. 4, 2010 at 3:43:29 pm
Not the first time the McD's have done this and it won't be the last.

+ 2 Rating (This comment was rated +1.) Posted by: RBRB1 at Mar. 4, 2010 at 4:45:24 pm
Maybe Mayor Martin can just buy out the sub-contractors like he did with xcel. Then he could go on TV and tell everybody that buying the subs will be good for the "infrastructure" and the citizens in the long run.....

+ 1 Rating (This comment was rated +1.) Posted by: burritojoe66 at Mar. 4, 2010 at 5:43:28 pm
the mcds are the biggest crooks in the town ,thats wy they got what they got

+ 1 Rating (This comment was rated +1.) Posted by: paperboy66 at Mar. 4, 2010 at 6:07:58 pm
We pay this much to the MC McDougals every month in Pipeline land finders fees. And the total floor rental in the wells Fargo bldg $150,00 per year and who know what else will finally come to light.

+ 1 Rating (This comment was rated +1.) Posted by: ROGERSETTLER at Mar. 4, 2010 at 7:29:24 pm
GREAT POSTS, EVERYONE!

+ 1 Rating (This comment was rated +1.) Posted by: arizonabay at Mar. 4, 2010 at 9:41:21 pm
ahhh....the smell of dissent. I love it!!! (fans the flames)

-2 Rating (This comment was rated -1.) Posted by: Beastherc at Mar. 4, 2010 at 10:10:19 pm
Roger Settler is still alive... I thought he died in a homeless shelter in Austin years ago.

(This comment was flagged as inappropriate.) Posted by: Beastherc at Mar. 4, 2010 at 10:15:24 pm
Oh, and the McDougals told Glenn Beck that Debra Medina is a truther, thus fixing the election for Perry, who's campaign they also financed. Mark Griffin still won't forgive them.

+ 1 Rating (This comment was rated +1.) Posted by: RalphBauer at Mar. 5, 2010 at 9:11:16 am
Deep sighs of relief are being heard throughout the City...ah, finally McD news. Man, those withdrawal pains must be SOMETHING!

Posted by: feaco at Mar. 5, 2010 at 9:47:36 am
Let's be fair, other cities have had a great success revitalizing downtown. Look at Houston, they built a new basketball arena and a new baseball stadium and billions redeveloping downtown. Maybe the McDougals need to see if they can move the Houston Rockets to Lubbock along with the Texas Rangers. The Rangers could be renamed the Lubbock Duhs after its former owner and the Houston Rockets could become the Lubbock Prairie Dogs. Some things are not meant to be.

+ 1 Rating (This comment was rated +1.) Posted by: ROGERSETTLER at Mar. 5, 2010 at 10:30:53 am
"The rumours of my death have been greatly exaggerated." -MARK TWAIN :D
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Re: SUBCONTRACTORS ON HOTEL FILE LIENS TO RECOUP UNPAID BILLS

Postby ROGERSETTLER » Fri Mar 05, 2010 12:29 pm

http://lubbockonline.com/stories/030410/loc_570515188.shtml

Image
The Pioneer Hotel on March 3, 2010. Renovations have stopped on the building because of a dispute between developers and sub contractors. (John A. Bowersmith/Lubbock Avalanche-Journal)
Image

Delbert McDougal looks out a window in the Pioneer Hotel while it undergoes renovations March 25, 2009.Renovations have stopped on the building because of a dispute between developers and sub contractors (John A. Bowersmith/Lubbock Avalanche-Journal)

Lienholders:

Techsan Industries of Lockney filed a lien Oct. 2 for $37,922 in labor charges.
Aspen Elevator of Wichita Falls filed a lien Dec. 2 seeking $189,162.
Airtite Products of Abilene, the company that made the hotel’s custom-built windows, filed a lien Dec. 12 for payment of $106,736.
Fire Protection of Lubbock filed a lien Feb. 12 for the remaining $72,000 of a $142,000 contract.
American Mast Climbers of Whitney filed a lien Feb. 18 seeking payment of $27,376. The company provides construction elevators to job sites.
:shock:
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Re: SUBCONTRACTORS ON HOTEL FILE LIENS TO RECOUP UNPAID BILLS

Postby Firemall » Fri Mar 05, 2010 2:50 pm

This will not do McDoodles Corp one bit of damage to their Credit rating . The rich are immune from the screwings they give lowly contractors . Been There & still am. There.
This is not new, news . These shenanigans are part of the way the big boys play .
I have to assume the Big "McD' Boys are not Laughing in the face of these contractors {as they are known for } this time though.

The scary part will be when we find out that city hall [Uh-Hum] is jumping to the moon trying to find a covert way to divert some bailout funds toward the south loop's sub council offices.
Dam , looks like the 34th street merchants might be put off again. I'd rather see the Lake Henry project on hold or at least the Loop Council's Mayor could divert / garnishee Marc's paycheck to their creditors. Fat Chance !!! LOL

Hmmmm !! I wonder if this is a small Picture in the Bigger picture of the future of downtown redevelopment ?? Yep "the times , they are a changin".
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Re: SUBCONTRACTORS ON HOTEL FILE LIENS TO RECOUP UNPAID BILLS

Postby ROGERSETTLER » Sat Mar 06, 2010 10:51 am

I wonder how long it shall take crony MAYOR TOM MARTIN to come up with a BAILOUT PROGRAM for the McDOUGAL's Pioneer Hotel? First, AIG and Wall Street, and then......Lubbock???? :?
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Re: SUBCONTRACTORS ON HOTEL FILE LIENS TO RECOUP UNPAID BILLS

Postby Firemall » Sat Mar 06, 2010 11:07 am

Read it & Weep Folks !! Here we go !! LMAO if it was funny !!
Hide your wallets and run for the hills , The Boogie man Cometh to take our cash away , HAHA----HAHA !!!

There are times when I wish I were wrong about things to come .
Seems that the City of Irving Power Brokers didn't read the old LOL forum before grubb-staking their own Little Overton Project .
Sorry about having to C&P the article , the Link didn't work.


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Irving City Council approves $500,000 in loans to cover Heritage District developer's interest payments

09:22 AM CST on Friday, March 5, 2010
By BRANDON FORMBY / The Dallas Morning News
bformby@dallasnews.com
The Irving City Council voted Thursday to provide up to $500,000 in loans meant to ensure the interest payments on a developer's city-backed $24 million loan are made.

If Delbert McDougal defaults on the loan, Comerica can force Irving into its own $27 million short-term loan to cover the Lubbock developer's credit line.

Also Online More news, information about Irving

Blog: Irving
The council voted 7-2 for the loan amount, with members Beth Van Duyne and Tom Spink dissenting.

McDougal said Thursday that the city is responsible for the interest costs on his massive Heritage District redevelopment initiative and that he is not going to default.

City officials said that the developer is responsible for the interest costs but that it's in the city's best interest to ensure the payments are made so a default doesn't occur.

"So why wouldn't we advance the interest payment for what we think is going to be a very short period of time?" said Brenda McDonald, the city's real estate and development director.

McDougal's line of credit has a $217,000 interest payment about to come due. Officials said the complex financial plan under which he operates was meant to have the Comerica interest payments come from his unused line of credit. The $24 million ceiling on that credit line is about to be reached.

"We're meeting a commitment we made in a different format than we originally agreed to do so," Mayor Herbert Gears said.

McDonald answered council members' questions about the $500,000 loan. At one point, Van Duyne asked McDonald whether she worked for McDougal or the city, drawing applause from audience members, about a dozen of whom voiced opposition to the matter.

Some residents have questioned the city's increasing payments and loans to McDougal while his announced construction start dates have continually been pushed back. They have also criticized consulting fees he collects, which could earn him more than $810,000 by 2012.

That does not include any profit he makes off development deals or land sales. It also does not include real estate commissions that the real estate arm of his companies makes on land sales.

Several others support McDougal's willingness and ability to buy and prepare large parcels of land, something officials call the "heavy lifting" in redevelopment projects that most developers don't want to undertake. Many in Irving can't wait to see the projects he's working on and hope they spur more redevelopment.

City leaders say McDougal's work in South Irving already is drawing the interest of other developers and has spurred the city to begin other redevelopment initiatives along aging corridors.

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Comments (5)
Posted by yankee 1 | 1 hour ago
Giant- You said it all!!!!!!


0 0Report Abuse

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Posted by k rose | 20 hours ago
Beth Van Duyne asked Brenda McDonald the obvious...McDonald is definitely NOT working for the City of Irving, and McDougal continues to fleece the City. Disgusting.


1 1Report Abuse

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Posted by Ken Ewing | 23 hours ago
Government 101

THEOREM: Don't worry, it's only taxpayers' money

COROLLARY: There's more where that came from.


1 1Report Abuse

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Posted by Giant | 1 day ago
Irving people want redevelopment in South Irving. Personally, I would like to see a little less of the city chipping in and more McDougal chipping in and something built. This has become a sore spot with handing more and more cash without seeing any returns. He has not spent his own money that we keep hearing about over and over, (first $2M now the mayor said $3M). His own money is totally backed by the city of Irving. City backed Irving bank and in a Lubbock bank, how much more do we have to give. The Mayor has said we cannot afford to let McDougal fail. We don't want the land and that is what we get if he fails. Seems this should have been thought out before patterning with any developer.
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Re: SUBCONTRACTORS ON HOTEL FILE LIENS TO RECOUP UNPAID BILLS

Postby Bobbie » Tue Mar 09, 2010 5:58 pm

McDougal came to Irving, Texas in 2006 and made deals with the council for redevelopment on downtown. The city has backed his loans in the millions. He has bought properties and received 6% commission fees (do you receive commissions when you buy a piece of property? He is receiving $10K per month for consulting fees. He also receives expense money from Irving and Farmers Branch. The city council is loaning him money for his interest payments and this last council meeting loaned him an additional $500,000. The city backed his loans to a bank in Irving and then he took out a loan from a Lubbock bank and the city backed that loan. He has bought properties at highly inflated prices. He has cleared some properties but nothing built to date. The properties are in a land bank and if he defaults the city gets these over priced inflated pieces of property back. 2 members of the city council Beth Van Duyne and Tom Spink have voted against these loans/commissions/consulting fees. The rest are his pawns. Email me with any information you have as I believe the city is in so deep they do not want to admit to a problem and keep giving him more rather than admitting failure. All this is given without start or completion deadlines. Has anyone ever seen an audit or financial report on him and his companies? Farmers Branch has a very similar if not duplicate deal with them.
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Re: SUBCONTRACTORS ON HOTEL FILE LIENS TO RECOUP UNPAID BILLS

Postby Firemall » Tue Mar 09, 2010 7:53 pm

Bobbie wrote:McDougal came to Irving, Texas in 2006 and made deals with the council for redevelopment on downtown. The city has backed his loans in the millions. He has bought properties and received 6% commission fees (do you receive commissions when you buy a piece of property? He is receiving $10K per month for consulting fees. He also receives expense money from Irving and Farmers Branch. The city council is loaning him money for his interest payments and this last council meeting loaned him an additional $500,000. The city backed his loans to a bank in Irving and then he took out a loan from a Lubbock bank and the city backed that loan. He has bought properties at highly inflated prices. He has cleared some properties but nothing built to date. The properties are in a land bank and if he defaults the city gets these over priced inflated pieces of property back. 2 members of the city council Beth Van Duyne and Tom Spink have voted against these loans/commissions/consulting fees. The rest are his pawns. Email me with any information you have as I believe the city is in so deep they do not want to admit to a problem and keep giving him more rather than admitting failure. All this is given without start or completion deadlines. Has anyone ever seen an audit or financial report on him and his companies? Farmers Branch has a very similar if not duplicate deal with them.
Bobbierandle@verizon.net


The property in the Overton project was exactly opposite of what you say happened in Irving as far as values.
The Overton folks were blessed with property appraisals that dropped to the bottom of the tax barrel -----The year before the owners & public were informed about the redevelopment project. :roll: :naughty: :naughty:
Which meant that Mcdoodle corp lowballed them out of the property because of the low tax appraisals. In the Lubbock case it was a simple "buy low ,Sell higher than the sky , scenario, -- with a Lot of Help from friends downtown..
One side of a domino effect was rent in remaining rental districts for single family homes skyrocketed along with new starter house values but older apartments complexes lost revenue / tenants because of overbuilding of apts. in the Overton district as well as all over town . TheWise councils of long past were very careful about overbuilding but that ended with the Buddy System we now are blessed with---.to pay for !!.
Sounds like the Irving deal could be an under table kickback scheme. Buy High and past back / split the windfall profit thing & as in Lubbock quite a bit of of these deals have ended up riding on the taxpayers back either directly or by proxy.
Seems both cities has fallen for the "Fleece the taxpayers and / or owners gig."
IMO , the Freedom of Information act should apply in Irving as well as Lubbock. Good Luck though. Do you carry consealed or open ??? LOL
I recall some years back, trying to look up a Certain Real estate corp here and after 3-4 attempts at seeing the Corps property list on the LCAD site, it shut my ass down as well as locking down my PC. HMMM !!
It took me half the night to get my puter back to putering .
I will never consider that event as coincidental.
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Re: SUBCONTRACTORS ON HOTEL FILE LIENS TO RECOUP UNPAID BILLS

Postby ROGERSETTLER » Sun Mar 14, 2010 2:49 pm

NOTICE the resounding SILENCE from the likes of MAYOR TOM MARTIN and City Councilman PAUL BEANE about the failure of their bosom buddies the McDOUGALS to pay their bills? :D
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Re: SUBCONTRACTORS ON HOTEL FILE LIENS TO RECOUP UNPAID BILLS

Postby Firemall » Sun Mar 14, 2010 4:35 pm

HMMM !!! Seems ironic that the cash cow has somehow taken leave of Mcdoodle's bank accounts about the same time the FBI investigation have returned to the limelight with Leonard's Federal depostion issues.
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Re: SUBCONTRACTORS ON HOTEL FILE LIENS TO RECOUP UNPAID BILLS

Postby ROGERSETTLER » Thu Apr 08, 2010 1:14 am

LEST WE FORGET.....
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