Colony Ridge in more hot water
AUSTIN — Focus on Colony Ridge has been commonplace in the last year, and now Texas Attorney General Paxton has ramped up efforts on his part with a lawsuit filed against the Liberty County development.
Colony Ridge has been at the center of the battle over immigration in Texas. It has drawn the ire of conservative news media, and the Department of Justice announced its case against the developer over land practices and financing last December.
The newest filing alleges deceptive trade practices, fraud in real estate transactions, and other violations of Texas and federal law.
"Colony Ridge has been flagrantly violating Texas law. The development profited from targeting consumers with fraudulent claims and predatory lending practices," said Attorney General Paxton. "Their deceptive practices have created unjust and outsized harms. Nearby communities have borne a tremendous cost for the scheme that made Colony Ridge's developers a fortune."
Developer Trey Harris is countering arguments and firmly believes there is no substance.
"I think Paxton is misinformed, and I don't think there is any merit to his suit," Harris said.
According to a press release issued by Paxton's office, the rapid growth of the development has major problems, echoing issues by many opponents of the development.
Furthermore, it notes an investigation by his office found that the developer has made numerous false, misleading, and deceptive sales, marketing, and lending practices that enabled their business model, which suggests it is predicated on churning land purchasers through a foreclosure mill.
"Namely, Colony Ridge targets foreign born and Hispanic consumers with limited or no access to credit with promises of cheap, ready to build land and financing without proof of income," the lawsuit reads.
The development, which some estimates put around 50,000 plus residents, continues to grow, with developers claiming they are offering the American dream to their customers.
Their trade practices remain at the center of the dispute, with claims in the Paxton suit that a representative of Colony Ridge testified before the Texas Senate last October that land foreclosures are at a rate of 12% in the development. The lawsuit alleges the rate is 50 times greater than the national average of 0.26%.
The suit further alleges that former employees were instructed to avoid English-speaking customers.
"Colony Ridge's scheme begins with aggressively targeting Spanish speakers, including a significant share from international communities," the suit reads.
Harris believes individuals are misleading the attorney general and that he has been pressured politically, even alluding to racism by some, to be at the center of things.
"I think it's political, and I think there is a lot of political pressure that, in my opinion, is racist based, and there is a lot of pressure being put on our political leaders," Harris said.
This is just the newest trouble for the development, which has been at the center of debate, including the recent primary election, where incumbent Texas House District 18 State Rep. Ernest Bailes lost the Republican nomination.
Bailes was bombarded by rhetoric alleging he had not done enough regarding the development, which may have helped lead to his defeat.