EXTENSION REQUESTED ON DRUG REHAB CENTER

Owners of the Southgate motel in south Oklahoma City have asked for
more time to prove they have the resources to renovate the property
into a drug rehab center.

The Oklahoma City Council in February narrowly approved the
controversial rezoning request by Tara Investments for the motel, 5245
S Interstate 35.

The approval was given provided the company could prove to Assistant
City Manager Cathy O'Connor that the operators have the ability to
adequately renovate and maintain the property.

Pete White, attorney for Tara Investments, said he met with city
staffers again Tuesday afternoon and hopes he won't need the extension.

"It has been our intent from the beginning and is our intent to
satisfy the city staff that we have the capacity to follow this
project through," White said.

Ward 5 Councilman Jerry Foshee led opposition to the proposal,
presenting information filed with the federal Securities and Exchange
Commission by a company tied to the Southgate proponents through
complicated financial connections.

Foshee said the filing showed Sooner Holdings had $2 million more in
debts than assets, lost almost $1 million last year and might have to
seek bankruptcy protection.

He said the filing raised serious questions over whether investors
have the financial clout to invest enough in Southgate to refurbish it
adequately.

Several critics said an existing center run by the company has not
been maintained adequately. Part of the property is vacant and boarded
up.

Ron Alexander, who is scheduled to run the Southgate center, said he
had $550,000 to spend on the refurbishing and has a bank's promise to
lend him $2 million, pending approval of his plan and a contract with
state Corrections Department officials to handle drug offenders.

As of Monday, however, O'Connor said she had not been provided
adequate information to determine whether the project is feasible.

Foshee said the extension request has him wondering whether Tara
Investments ever had the financial means to proceed with the renovation.

"The man stood here and said he had the financing all along," Foshee
said. "I don't know what's going on."

Mayor Kirk Humphreys, who supported the zoning request, said he
suspects opponents are against the plan, regardless of financial
qualifications.

"Those who voted against it didn't want it at all," Humphreys said.
"Those who voted for it wanted to make sure it's done right."