Northwest Bank and a Regency company have agreed to the appointment of a receiver to manage the completion and sale of a residential project in Urbandale.

James McClarnon, president of McClarnon Properties Inc., a real estate management and consulting firm in Norwalk, will act as land developer and construction and property manager for Walnut Lake Townhomes LC.

Northwest Bank filed a lawsuit seeking foreclosure of properties at the development and $3.5 million that it claimed the development company and Regency officers owed on two loans.

McClarnon, a Norwalk city councilman, also has the authority to borrow money against those notes in order to complete the project, which he said consists of occupied and sold units, units in various stages of construction as well as empty lots.

His charge is to maintain or improve the value of the property.

Dallas County District Court Judge William Joy signed the agreement Tuesday and set out procedures for the distribution of revenues collected by McClarnon.

Income from managing the property is to be applied to expenses, borrowed money, any fees due Northwest under the terms of its mortgages on the property, the loans and an interest-bearing account, in that order.

Joy’s ruling marks the second time in less than a week that Regency or related companies have lost control of developments that came to standstill as a result of their financial troubles. Regency halted its residential construction and land development operations April 25.

Properties in Dallas, Polk and three other Iowa counties were placed under the management of ATEC Inc. and its principal, Paul Lerman. The St. Louis-area real estate manager and liquidator, is responsible for the completion and sale of properties used as security for a $15 million line of credit issued last year by Regions Bank.

Regions has filed a lawsuit in Polk County District Court seeking to foreclose on the properties.

A third project is the subject of a receivership hearing June 24, also in Dallas County District Court.

Meanwhile, Regency officers and two of its companies have been named in a lawsuit seeking nearly $8.2 million in principal, interest and fees on loans totaling $11.3 million that were issued by Community State Bank.

Woodland Reserve Condominiums LC, Woodland Reserve Townhomes LC and Regency officers James Myers, Robert Myers and Richard Moffitt and former financial officer John Gamble were named in the lawsuit, which also seeks foreclosure on Ankeny properties that were used to secure the loans.

A portion of the loans was guaranteed by the individuals. According to the lawsuit, James Myers guaranteed a total of $3.9 million, Moffitt guaranteed $4.7 million and Gamble guaranteed $1 million. Robert Myers guaranteed one loan for $787,500.