Ex-owner arrested in dude ranch fire

[TexasStooge]

By KEVIN KRAUSE / The Dallas Morning News

JUSTIN, Texas - A woman who made it her mission to keep the Old West alive through Texas Lil's Dude Ranch was arrested in connection with a Nov. 4 arson fire at the nearly 200-acre spread she used to own.

Northlake police arrested Lynda Arnold, 65, at the ranch Tuesday afternoon on a third-degree felony charge of tampering with physical evidence. She was released on $100,000 bond.

Ms. Arnold, nicknamed Lil, could not be reached for comment.

Police said Ms. Arnold is accused of "concealing and making unavailable physical evidence" related to the arson investigation. The charge was the result of evidence found Nov. 5 as officers executed a search warrant at her home on the ranch and another property in unincorporated Denton County, said Northlake police Lt. Brian Harpole.

Police obtained the search warrant because of inconsistencies between Ms. Arnold's statements and those of witnesses, Lt. Harpole said.

He said Ms. Arnold had initially cooperated with the investigation into the fire that destroyed three buildings and caused millions of dollars in damage. But she stopped talking to investigators once they found evidence outside those two properties, Lt. Harpole said.

When asked about a possible motive for the fire, Lt. Harpole cited "emotion over losing something."

Ms. Arnold is a partner in Texas Lil's Family Limited Partnership, which owned the ranch. The partnership had filed for bankruptcy in September 2003 after defaulting on a $2 million loan it received in 1997, but the court rejected its plan for reorganization.

The partnership filed for an emergency restraining order to delay the foreclosure sale. The order expired, allowing the bank to sell the property in early October, court records show.

A real estate venture, DKM Property Co. Ltd., bought the ranch southwest of Interstate 35W and FM407.

Shannon Millsap, one of the new owners, declined to comment on Ms. Arnold's arrest but said the ranch will continue.

"We're definitely rebuilding," he said. "I feel like we have a good business to continue to operate up there and move forward."

Damage from the fire is estimated at between $4 million and $5 million, he said, adding that the ranch's total value is close to $10 million.

After the fire, police arrested Billy Gene Howard, 48, a longtime ranch employee, on arson charges. Mr. Howard, who has a criminal record, remains in Denton County Jail in lieu of $150,000 bail.

Lt. Harpole said officers are investigating other crimes that could be related to the fire. Police declined to elaborate. If convicted, Ms. Arnold faces a maximum penalty of 10 years in prison.