SHUTTING IT DOWN: Scotts Valley is beginning foreclosure proceedings on this sloping meadow on La Madrona Drive that’s the planned site of a Target store. Chuck Anderson/Press-Banner
Landowner Title Two Investment Corp. failed to pay more than $310,100 it owes in delinquent property taxes by June 30, the end of the fiscal year. The company also declined to set up a payment schedule with the city.
“I talked to (Title Two representative) Richard Johnson today — they are not in a position to enter into any payment plan at this time,” city attorney Kirsten Powell told the City Council on Wednesday, July 1.
In response, the council authorized Powell to move forward with the foreclosure process.
Powell said she would file a complaint with the court, after which Title Two has 30 days to answer or pay the taxes it owes. If at the end of 30 days the company has still failed to pay and the court allows the foreclosure, the city can issue a notice of public sale ending in a public auction of the property.
However, the foreclosure may not have a direct affect on the Target project itself.
Title Two has fully paid the $305,613 for the required environmental impact review, said Susan Westman, the city’s interim community development director. If the next property owner wants to build the same project, the same environmental study can be used.
“The EIR is for the project proposed on that site,” Westman said.
This is not the first time the La Madrona Drive property has faced foreclosure this year.
The city nearly began the foreclosure process in April, but Title Two, at that time paid, $174,400 it owed from its April 2008 property tax, which delayed the process. The company is currently delinquent on both its December 2008 and April 2009 payments.
Title Two appears to have cash-flow problems. Besides failing to pay property taxes, the firm had been late paying the city for work on the EIR for the property, causing the city to halt work on the report until payment came in.
It would be nice to see a follow up story on this. Has the City attorney yet filed the complaint with the court? If so when was it filed and when does the 30 day cure period end?
The impossible comment from the City sadly says it all:
"Title Two has fully paid the $305,613 for the required environmental impact review, said Susan Westman"
Scotts Valley is intent on pushing the EIR through the system regardless of any public or inter-agency comment or questioning. How is it possible that the EIR is "fully paid" when the EIR process requires that the City put the product out for public review before it can be finalized? Once the City publishes their study, the public as well as City, County and State agencies are given the opportunity to comment on the results. As part of the process the City MUST respond to each and every question and response. The costs associated with that response requirement are a function of the depth and quantity of questions and comments which the City hasn't yet seem. If the City is claiming that the EIR is fully paid for, apparently they have little intention to give those comments and questions any serious consideration. In other words the only way that the costs are already known is if the City intends only to give the process lip service. Big surprise!