Shutdown doesn't stop sale of Irving's Vista Del Lago apartments

Brandon Formby

Sep. 3, 2008 (McClatchy-Tribune Regional News delivered by Newstex) -- The developer tapped by the city to revitalize south Irving signed a contract to buy the beleaguered Vista Del Lago apartment complex months before the city closed it because of dangerous conditions.

Lubbock-based developer Delbert McDougal said this week that he entered into a contract in March with the complex's owner, listed as Harry Singh of California. Mr. McDougal said he had planned to keep the property open for at least another year.

But the fire department ordered tenants to evacuate last month after an inspection turned up exposed electrical wires, broken ceiling joints and raw sewage under the floors among the more than 1,700 code violations. City officials said 112 of the complex's 116 units were occupied.

Gerald Jones was among the tenants forced out. He said the owner and managers should have addressed routine maintenance issues such as broken front doors and moldy units. Instead, he said, they bilked residents because they knew the property would soon switch hands.

"It makes me very angry because I could not get anything done," said Mr. Jones, who has been staying with a friend.

Mr. Singh did not return phone calls seeking comment. He maintains control of the property while the sale is pending.

Mr. McDougal said he had no idea what the conditions were inside the complex, but he still plans to go through with the sale and eventually redevelop the site. Mr. McDougal said he has been planning to pay more than $3.7 million for the property, which the Dallas Central Appraisal District values at about $2.9 million.

"We've got to do some environmental testing on the front end of it now, so that we are aware of what's in there," he said.

The city's building and standards commission ordered Vista Del Lago representatives to submit by Oct. 18 an asbestos survey and detailed repair schedule. The commission is expected to revisit the property's status Nov. 6.

City officials, meanwhile, said the complex's closing had nothing to do with Mr. McDougal's pending contract to buy the property.

"I've been asked by several people that same question, and my answer to that question is we had some safety issues out there," Irving code enforcement director Teresa Adrian said. "We dealt with the code violations and the dangerous violations. It didn't matter who owned it or who didn't own it or who was thinking about buying it."

Irving has drawn attention for cracking down on what officials call substandard living conditions. Increased code enforcement has resulted in the closure of several apartment complexes, including Villa Martinque, Kings Manor, Chivas Square and Spanish Trace. Around the corner from Vista Del Lago, a fence recently went up around the vacant MacArthur Square.

The owners of some of the vacated complexes have sued the city, claiming harassment, abuse of power and unreasonable actions. Those suits are pending.

The city uses a fund set aside from fines and civil penalties to help tenants relocate. So far, 14 tenants from Vista Del Lago have received assistance. Applications are pending for 12 more. Six others were denied assistance because they either did not have a Social Security number or did not pass a criminal background check.

City officials hope Mr. McDougal's project will revitalize the Heritage District in south Irving. So far, the city has granted him a total of $24 million in credit for the project. The City Council increased his line of credit back in March so he could buy Vista Del Lago and two other nearby apartment complexes.

On Thursday, the Irving City Council will vote on whether to extend an additional $16 million in credit so Mr. McDougal can continue buying property in the city's Heritage District.

According to city documents, Mr. McDougal has already spent more than $13 million on properties in that area.

The council is also scheduled to vote on whether to allow Mr. McDougal to demolish three city-owned buildings in the district. Mr. McDougal said the sites would likely be redeveloped for future projects.

In a work session today, City Council members indicated they'd like Mr. McDougal to present a project update before he asks for any amount over the $40 million total that could be set Thursday.

"We now need to know we've land-banked and we're ready to begin redeveloping," council member Joe Philipp said.

Newstex ID: KRTB-0046-27875248