PNC Bank has filed a federal lawsuit against O’Fallon, Mo. real estate broker Paul McKee for allegedly defaulting on an $8.3 million loan.
According to the lawsuit filed in U.S. District Court in East St. Louis, McKee and several of his business entities have allegedly defaulted on loans made in connection with a mixed-use development in Shiloh.
McKee’s McEagle Properties had initially announced plans to develop Three Springs, a 193-acre retail, office, medical and residential development at the southeast corner of Frank Scott Parkway and North Green Mount Road.
With the exception of an American Eagle Credit Union that opened on that corner in December 2013, the land has remained undeveloped.
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Jim Gradl, a spokesman for McKee, released a statement Thursday: “We have enjoyed a good working relationship with PNC Bank over a number of years in connection with our project in Shiloh, Ill. Unfortunately, the timeline for the project extended far beyond anybody’s original expectations. In conjunction with our lender we developed a plan to accelerate the disposition of large areas of the project.”
St. Louis attorney Wendi Alper-Pressman, who is representing PNC Bank, declined to comment.
Shiloh Mayor Jim Vernier declined to comment.
Contact reporter Will Buss at email@example.com or 618-239-2526.