Paul McKee, the developer seeking to transform a large swath of north St. Louis with his NorthSide Regeneration project, has been hit with a lawsuit for delinquent loans tied to hundreds of properties.
McKee and NorthSide Regeneration are in default on $17.6 million worth of 2007 loans tied to the project, according to a lawsuit filed in St. Louis County. The suit was filed by Titan Fish Two LLC, a Kansas-based company that bought the loans initially issued by Corn Belt Bank.
Titan Fish is seeking a receiver for more than 400 parcels of land that are part of the redevelopment project.
The loans went into default in 2009, but the involved parties reached a forbearance agreement to delay collection on the notes, the suit alleges. However, by November 2012, McKee failed to make payments agreed upon in the forbearance deal, the lawsuit says.
Proposed more than a decade ago, NorthSide has received or been promised millions of dollars in public money.