Legal trouble ahead for developer PDF Print E-mail
Wednesday, 19 September 2007
By Edmond Ortiz
Staff Writer

A developer who already faces opposition from some Schertz residents for his attempt to request a small tract for business purposes now is the target of a lawsuit.

David Escalante of California filed a suit in June, alleging he sent $5,000 in earnest money and $500 in option money to Montelongo Developments LLC.

In exchange, Escalante would get a 17 percent share of the 14,000-square-foot retail development that David Montelongo plans for a 4.1-acre tract at Farm Road 3009 and Patrick Henry, according to an article last weekend in the San Antonio Express-News.

Several residents in two nearby neighborhoods are highly critical of his request to rezone the land from residential to neighborhood services. Schertz City Council was scheduled Tuesday to hold a public hearing and consider preliminary approval of the request.

The lawsuit claims Montelongo used the money to initially put the land under contract as part of a drafted partnership agreement. But Escalante’s lawyer said his client was told by Montelongo that the local developer would proceed with the Schertz project with another party.

Montelongo did not return the earnest funds, resulting in a breach of contract and fraud, Escalante contends. An attorney said Montelongo denies the allegations.

 
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