posted July 1, 2008
An Ooltewah bank has sued prominent Cleveland, Tn., businessmen Steve A. "Toby" McKenzie and Lynn Jones.
The suit was filed by Community Trust and Banking Company in Hamilton County Chancery Court.
It says Mr. McKenzie and Mr. Jones have defaulted on a $6.5 million loan.
The suit, filed by attorney Thomas Dickenson of Knoxville, says the note was taken out on Jan. 25, 2006, by Specialized Training Facilities LLC and the two defendants.
It says the principal owed remains at $6.5 million and interest of $180,375 has accrued as well as late charges of $7,484 and a $2,500 appraisal fee.
The suit says interest is accruing at the rate of $3,250 per day.
It says credit will be given for any amount realized from a sale of real estate that was collateral for the loan.
The 595-acre farm in Bradley County owned by Mr. McKenzie is being sold at auction along with his 51 remaining lots at the Hampton Creek subdivision in Ooltewah.
Both auctions are set for July 10.
The former UTC Roundhouse was renamed McKenzie Arena after a large donation from Mr. McKenzie and his former wife, Brenda.
They also gave a large gift for the McKenzie Athletics Center at the University of Tennessee.
Mr. McKenzie made his fortune in the title loan business, then got into real estate development.
Mr. Jones is a contractor and developer.
Both Mr. McKenzie and Mr. Jones have been donors to a number of candidates.
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