Credit Crunch Puts 2 N. Texas Construction Projects on Ice

Developers unable to get loans, McKinney official says

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    NEWSLETTERS

    KXAS

    The credit crunch has brought two major construction projects in McKinney to a standstill.

    City officials have put the brakes on the Star Center sports complex -- at least for now.

    Credit Crunch Puts 2 N. Texas Construction Projects on Ice

    [DFW] Credit Crunch Puts 2 N. Texas Construction Projects on Ice
    The credit crunch brings two major construction projects in McKinney to a standstill. (Published Friday, Nov 7, 2008)

    "We're basically about $1.8 million over budget," city manager Frank Ragan said. "We've decided to put the project at least on hold."

    He said that while the city is flush with money, developers can't get loans.

    "Some of the projects that would normally get financed a year ago cannot get financing now," Ragan said.

    Work on McKinney's new hotel and conference center stopped weeks ago, with the developer asking city leaders for an additional $5 million to finish the job.

    Developer Jeff Blackard said he's "concerned every day."

    His vision of a Croatian-style village in McKinney is 14 months from completion. But Blackard said he would be unable to get a bank loan if was starting today, despite his track record of success.

    "Equity or cash you have to have in it was 20 to 30 percent," he said. "They're asking for that or more."