Delinquent Debts Push Developer Phil Herrington Out at Oklahoma City Country Club

by George Waldon  on Monday, Feb. 3, 2014 12:00 am  

Flake and Herrington were tight-lipped about who the investors were and the strategy behind purchasing the two Promenade loans from First Liberty.

“I’m really not at liberty to disclose that,” Herrington said. “We do consider it to be an interim solution.”

For more than two years, the Pro-menade property secured a $3 million loan from First Security Bank of Searcy. First Liberty provided replacement financing in December 2011.

According to real estate records, a dozen lot sales during the past couple of years have generated $2.5 million at Promenade. On the backside of the lot sales, Herrington’s Gaillardia Construction retains exclusive building rights in Promenade.

The other Gaillardia property retained by Herrington is more enigmatic.

The 5.17-acre tract on the west side of the Gaillardia clubhouse secures a $4 million mortgage held by First Commercial Bank of Edmond, Okla.

The terms of the loan make reference to lots on the property. However, development of the land is limited by current zoning, according to Oklahoma City Planning Department records.

The parcel is zoned for use as a golf course, golf-related structures and recreation, according to Oklahoma City planning staff.

Herrington received administrative approval in June 2008 to amend development plans to allow a nine-lot residential project called Cottages of Gaillardia.

However, the proposal drew vocal opposition from Gaillardia residents, who rallied to have that decision revoked on appeal to the board of adjustments later that year.

“It was quite a contentious fight,” said Art Swanson, chairman of Cardinal River Energy I LLC in Oklahoma City and a founding member of Gaillardia.

The would-be project has remained shelved ever since.

 

 

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