TD Bank steps into Alvinston tax sale

Business | Featured.

It will be some time before Brooke-Alvinston sees any tax money from the Lorne Street Apartments.

The three buildings were full of tenants when a new owner took over less than a decade ago. That was when the problems began.

Now, there are three units occupied. The other units have a litany of problems including black mould, trashed apartments and water leaks. The landlord has not make the necessary repairs, according to municipal officials. One of the buildings has been closed for building code violations.

After four years of unpaid tax bills on the 18-unit complex, the municipality began advertising the buildings for tax sale last month. The owner of the building owes the municipality over $288,000 in back taxes and water bills.

But CAO-Treasurer Rick Holland says the TD Bank, which holds the mortgage on the property, is about to step into the legal process.

“The TD Bank is going to court June 29th – the same day the tax sale closes – to put the unit into receivership,” Holland told councilors at a recent meeting.

“The receiver … will be trying to sell the property,” he added.

Holland says the municipality has kept the bank up to date with all the legal procedures over the year-long process but only decided to step in at the last moment – after the municipality had spent money for lawyers and advertising for the sale.

Holland says at the June 29th hearing, TD Bank is likely to ask for the tax sale to be delayed and if it is for anymore than 90 days, the municipality will have to go through the entire tax sale process again.

“Our lawyers are talking to the bank lawyers to see if we can resolve this issue,” says Holland adding the municipality will be in court June 29 to try to stop the receivership from moving forward.

And while all the legal moves cause more delays, Holland says Brooke-Alvinston will eventually get its money. Whenever the bank does sell the property, the municipality will receive its tax dollars first. But he says that could be a while.

“It could be another year to two years,” Holland told The Independent. “After that, if the bank give up (trying to sell the complex) then it goes back the municipality.”

 

 

 

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