LEAGUE CITY — Plans for a massive outlet mall in League City are tied up in bankruptcy court.
Compass Bank in January 2010 sued Sonrisa Realty GP LLC, Sonrisa Properties Management and the companies’ president, Randal Hall, for a defaulted $8.2 million loan guaranteed by Hall, according to court records.
Tanger Factory Outlet Centers announced in January plans to build a 95-store outlet mall west of Interstate 45 and north of FM 646, between the Big League Dreams sports complex and the Bay Colony shopping center in League City.
Hall and a representative from Tanger declined requests for interviews.
A federal judge in June ruled Hall and the Sonrisa general partners owed Compass bank $8.7 million, prejudgment interest accruing at $954.85 daily from March 25 to May 28, post-judgment interest at 5 percent and $20,000 in attorneys fees, according to court records.
Compass Bank had scheduled a Jan. 5, 2010, foreclosure sale for the 100 acres Sonrisa Realty and Sonrisa Properties own in League City, Bruce Ruzinsky, an attorney for Compass, said.
The bank couldn’t proceed with the foreclosure sale because Sonrisa Realty and Sonrisa Properties on Jan. 4, 2010, sought Chapter 11 bankruptcy protection, which automatically prevented the foreclosure sale of the property, Ruzinsky said.
Sonrisa Realty and Sonrisa Properties filed reorganization plans include the sale of 35 acres to Tanger, according to bankruptcy court documents.
Subject to bankruptcy court approval, Tanger agreed to buy the land for $250,000 an acre, with a total purchase price of $8.7 million, according to court documents.
Sonrisa gave about $1 million to Galveston County Management District No. 1 for the cost of reversing two Interstate 45 ramps near the planned complex.
The Texas Department of Transportation agreed to perform the construction work in April, Hall previously said.
Compass Bank objected to Sonrisa’s plan to sell the land to Tanger, and the bank’s attorneys filed liquidation plans that include an auction sale of the Sonrisa property, Ruzinsky said.
Galveston County also objected to Sonrisa’s plan to sell the acres to Tanger because the county holds a claim for delinquent property taxes against Sonrisa totaling $33,684 for 2007 through 2010, according to a lawsuit filed by the county against the developer.
Sonrisa has objected to Compass’ liquidation plans, according to court records.
A hearing regarding the plans and objections is scheduled Feb. 22 in bankruptcy court in Houston.
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