Foreclosure looms for Target site

Written by Chuck Anderson and Peter Burke Press Banner
Thursday, 16 April 2009

UPDATE -Scotts Valley Can't foreclose until July

City Attorney Kirsten Powell announced to the Scotts Valley City Council on Wednesday. April 15, that Scotts Valley is barred by Santa Cruz County from foreclosing on the property until the new fiscal year begins July 1.

Because Title Two paid the $174,400 it owed for delinquent property taxes dating back to April 2008, the city must wait until the end of the fiscal year to start the foreclosure process, even though the landowner still owes more than $310,000 in back taxes.

Powell said the county's rules prohibit it from taking Title Two off its “tax roll” until the end of the fiscal year. On July 1 the investment firm can come off the county’s books and if the firm still owes back taxes on the property at that time, the city can choose to move forward with the foreclosure process.

However, the city council unanimously passed a resolution stating that if the $174,400 check does not clear when it is processed in the coming week, it will authorize the foreclosure.