East Texas

By LAUREN GROVER
Staff Writer

LINDALE — A lingering land purchase dispute could hamper the construction of a $50 million hotel and convention center, a project city officials call an “economic dream” for this burgeoning town.

Hotel magnate John Q. Hammons, whose 71 hotels span 24 states, has made a verbal proposal to buy 14 acres for about $1.3 million at the northwest corner of Interstate 20 and U.S. Highway 69 from Tyler Rose Nursery Inc. owner Joe Tew, Tew said Wednesday.

Hammons was unavailable for comment on Wednesday.

The $50 million development would boast a 10-story hotel and adjoining convention center, plus hundreds of new jobs and a flourish of tourism, said mayor pro tem Jim Mallory.

“This is the deal of the century for Lindale,” Mallory said. “It’s something that would impact every household, every person … when you calculate the economic impact, it’s astronomical.”

But those 14 acres are within a chunk of land tangled in an appealed lawsuit filed in November by Thedford Crossing LP, a group that attempted to buy 300 acres from Tew in 2005.

Previous to the failed sale, Thedford Crossing spent months hiring engineers and designers to map out development on Tew’s land — including discussions with Hammons about building a hotel and convention center, said attorney Deron Dacus, of Tyler.

He says Thedford Crossing drew Hammons to Lindale long before he talked with Tew.

“Thedford Crossing brought John Q. Hammons to Lindale in the beginning,” Dacus said. “He would have never known about the property otherwise.”

Tew didn’t finalize the sale to Thedford Crossing in 2005, leading Thedford Crossing to sue in an attempt to enforce the purchasing contract, Dacus said.

Tew said the contract wasn’t complete, but Thedford Crossing said he pulled out of it for no apparent reason.

A district court judge ruled in favor of Tew in October 2007, but Thedford Crossing has appealed, leaving discussion with Hammons in a stalemate, Tew said.

The appeal process could take a year, said Tew’s attorney, Mike Gazette. The land title remains lis pendens, or in question, until then.

“Mr. Hammons basically told me if we could get this title cleared he’s ready to purchase it,” Tew said Wednesday. “I’m disappointed by this roadblock. If I could get this lis pendens removed I’d sell it tomorrow.”

But Tew and Thedford Crossing’s attorney said Wednesday both parties are open to negotiation toward a land-sale settlement so Lindale could benefit from such a lucrative building endeavor.

“We’d like to find a resolution that’s beneficial to Mr. Tew, Tyler Rose Nursery, Thedford Crossing and the City of Lindale,” Dacus said. “After spending years and hundreds of thousands of dollars, Thedford Crossing certainly doesn’t feel like just walking away from this property.”

On Tuesday night a handful of citizens inquired at the city council meeting what might come of the project, as it could affect their whole community.

The city has yearned for a convention center for years, Mallory said, a place large enough to hold community events and provide an attractive venue in East Texas.

Mallory said he hopes the deal won’t be lost, that this “incredible” opportunity could still be salvaged.

“This is the first time we’ve had a developer come to Lindale with a firm proposal and the financial ability to do it immediately,” he said.

Construction alone would provide hundreds of new jobs, plus hundreds of long-term staff positions to run a fine hotel, he said.

“It could mean at least 200 jobs,” he said. “It would have helped Tyler, it would have helped everybody.”

City Manager Owen Scott said the city can only act as an observer as this private enterprise is worked out.

“If it became a reality, it’d be good for the city, but right now it’s just a proposal and nothing more than that,” he said.

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