Photo by Jolene Guzman
American Gas & Technology in Dallas.
As of Tuesday, November 27, 2018
DALLAS — The American Gas & Technology building in Dallas is in foreclosure and slated for auction on Jan. 11, 2019, but CEO Ray Tate Jr. said the company is seeking refinancing.
American Gas & Technology started working in the building in 2015, billing it as the company’s corporate headquarters and where it would develop and manufacture its liquefied natural gas fueling stations. The company projected it would employ hundreds at the plant once under full operation.
According to a notice of foreclosure and impending auction, the owner of the building, Tate Investment Properties, failed to pay $37,812.50 per month since July 8, 2018. The auction will be at 10 a.m. on Jan. 11 at the Polk County Courthouse, 850 Main St.
The notice lists the principal balance on the loan as $4,125,000, with accrued interest of $59,239.58, increasing at $1,260.42 each day until paid. Late charges amount to $1,890.63. The real market value of the property is $3.665 million, according to the assessor’s records. The 131,000 square-foot building sits on nearly nine acres.
Tate said he needs $6 million to keep the building out of the auction and is confident he will secure it. The business also is seeking production financing. He said funding struggles have been due to low oil prices.
“We had some lenders who wanted to be partners with us, but no one was expecting oil prices to stay down over the last four years,” Tate said Tuesday. “But I think we are OK. I think we will be fine. I think everyone knows that oil is going back up.”
Tate said the production funding will come gradually.
“We won’t get it all at one time. We’ll have to meet milestones,” he said. Tate said he had the building listed for sale hoping to sell it to someone and leasing it from the new owner, but is now taking the refinancing route.
“We are all praying that the financing will go together and we are asking the community to pray with us because the community needs the jobs,” he said. “We’ve been here three years without revenue. Nothing but spending. We’ve got to turn that corner.”