Pearland, Texas Real Estate - Nancy Furst heard the Pearland WaterLights District may be headed for trouble

Nancy Furst

WaterLights Districts in danger of foreclosure

Stuck in the mud? The proposed WaterLights District and Presidential Heads Garden has been posted for foreclosure by Amegy Bank, developers announced recently. The 48-acre parcel is located on Highway 288 near Beltway 8.

By KRISTI NIX

Updated: 03.24.10

The developers of the proposed WaterLights District recently announced Amegy Bank has posted the property for foreclosure.

Located in a 48-acre parcel of land on Texas 288 just south of Beltway 8, the project was to include restaurants, stores, condominiums, and a ambitious Presidential Park & Gardens which would featured giant busts of all the U.S. presidents.

The project's developers, Boardwalk at the Spectrum LP, bought the property in February 2007 for $5 million in cash and a $10 million load from Amergy Bank.

They had large-scale plans that fell apart when the bank refused to refinance the loan and work out the release of potential legal claims.

The developers are now hoping for a capital partner or a foreign investor to step in and save the project. It’s an investment they say would pay off for the city as well.

“It is very unfortunate that this development has hit a roadblock. WaterLights has the potential of becoming one of the best mixed-use developments in the world,” Developer Richard Brown said in a statement. “The Presidential Park & Gardens could attract millions of visitors to the area, and students from all over Texas would have the opportunity to discover American history via the Presidential Park and Gardens. Unfortunately, the banks stopped lending to everyone, and we ran out of time. When Amegy Bank’s parent bank, Zions Bancorporation, receives over $1.4 Billion in TARP money, borrows the money at 1.5%, and then turns around and charges 18%....it is a sin and a shame. The numbers don’t work anymore.”

With several weeks still ahead until the bank officially pulls the plug, hopes for the project appear to be dim. Pearland city officials had worked to support the development and say its potential failure is a sign of the economic times.

“I think the financial difficulties faced by the developers of the WaterLights District are circumstantial. It’s a tough time to be taking on a big retail project like this,” said Pearland City Manager Bill Eisen on Monday. “The fact that this project may not make it is not necessarily a reflection on the city or the Spectrum Area or the Houston area. Unfortunately we’re seeing some of these kinds of things happen throughout this area and throughout the country because of the current state of the economy. And, we hope not but there may some other things like this that happen to developments in the community until the economy strengthens again and makes these things less likely.”

Nancy@CallNancyFurst.com

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