Former Regency officers have been ordered to pay $3.5 million in delinquent loans and give up their interests in an Urbandale townhome development.

Dallas County District Judge William Joy filed the order Monday after brothers James and Robert Myers, John Gamble and Richard Moffitt failed to respond to a motion for summary judgment filed by attorneys for Northwest Bank.

The order adds to a growing list of court losses resulting from development loans that went bad after Regency shut down in April.

Earlier this month, Joy ordered the Myers brothers, Gamble and Moffitt to pay their 75 percent share of a default judgment in a lawsuit filed by Vantus Bank over a delinquent $6.1 million loan for a portion of the Michael’s Landing project in West Des Moines.

As in the Northwest Bank lawsuit, the four men did not respond to a motion by Vantus Bank for summary judgment

The Northwest Bank lawsuit resulted from two loans totaling about $4.8 million to a Regency-related limited liability company for the 33-acre Walnut Lakes townhome development near 142nd Street and Meredith Drive in Urbandale.

Gamble, Moffitt and the Myers brothers guaranteed the loans.

Prior to filing the lawsuit, the bank had issued partial releases of its liens on 23 lots in the development.

In its motion for summary judgment, Northwest Bank asked to foreclose on a Walnut Lakes lot bought in 2005 by Fred Gruening, a former Regency sales manager who retired in February 2005.

Northwest claimed the lot had been used as part of a borrowing base to draw down on loans to the project.

The Gruening property was among the lots placed under receivership in June as the bank’s foreclosure action proceeded in court.

Gruening contested the motion, claiming that the bank should have known that he had purchased the lot due to the filing of a warranty deed in Dallas County. That deed later was corrected when the limited liability company that sought the initial loans changed its name.

Gamble filed an affidavit saying he had ordered a company accountant to remove the lot from the borrowing base and that it remained on the list in error.

Joy said that the issues surrounding the Gruening property should be decided at trial.

Gruening told the Business Record that he had made arrangements with the late Michael Myers, who founded Regency with Moffitt, to buy the first townhome completed in the development.

“I told Michael that I believed so much in the project that I would like to buy the first unit,” Gruening said.

Gruening said that when the unit was completed in mid-2005, he was not ready to move in, and it was used as a model for other potential buyers.

At this point, Gruening said he does not know whether he will move into the townhome or sell it, providing it is ultimately decided that his claim to the property takes precedence over Northwest Bank’s claim.