Motor hotel named in suit

Source: Valley Morning Star, Harlingen, TexasNov.自存倉 16--HARLINGEN -- Compass Bank has filed a civil lawsuit against Sun Valley Motor Hotel, LTD and its principal, asking to recover nearly $1.3 million in outstanding loans, the court record reflects.The loans were guaranteed by property that housed the landmark Sun Valley Motor Hotel on Business 77 that the city of Harlingen partially has a lien on. The city's lien backs the debt of $205,793 that Sun Valley and its principal J. Neil Murphy has with the city."I think our lien would survive," Mayor Chris Boswell said Friday of the city's priority lien on part of the property.The city's lien states that it is a privileged lien, being second only to tax liens and liens for street improvements, Cameron County records show.The bank filed the lawsuit Thursday in the U.S. District Court for the Southern District of Texas against the business and Murphy, noting that they guaranteed a $1.5 million note in 2000, and a second note in the amount of $144,753 in 2006, but that they have defaulted, owing $1,298,797. The bank hopes to recover the amounts owed.Murphy and S迷你倉n Valley have not yet responded to the lawsuit, but preliminary responses consist of general denials with demand for proof.The city filed a lien on the property in April this year after the city contracted for asbestos abatement and the demolition of the motel because Murphy said that he did not have the capability of applying a wet asbestos abatement process.Murphy said in November 2012 that with the asbestos abatement and demolition, the land would become more marketable, and he would be able to refinance it and repay the city.The commission awarded the abatement and demolition contract to J.T.B. Enterprises for $190,793. The expense to the city increased to $205,793 with additional costs, however, including an asbestos survey, asbestos abatement/demolition fee, Harlingen WaterWorks invoice, publication notice, title search, administrative fees and recording fees, according to public records.Eperez-trevino@valleystar.comCopyright: ___ (c)2013 Valley Morning Star (Harlingen, Texas) Visit Valley Morning Star (Harlingen, Texas) at .valleymorningstar.com Distributed by MCT Information Servicesmini storage