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January 8, 2010

 

Bank files foreclosure suit against Buckbee owner

Bank of India seeks to recoup $7 million loan given to International Electron devices

By HOLDEN B. SLATTERY
Staff Reporter
hslattery@cortlandstandard.net

The State Bank of India has filed a foreclosure on an India-based company that briefly manufactured television screen components at a plant on Kellogg Road.
The foreclosure complaint, which was filed Dec. 15, could bring the city a step closer to obtaining back taxes it is owed on the property.
The State Bank of India is trying to recoup a $7 million mortgage on the property from New Delhi-based International Electron Devices, which abandoned the property in 2005 and owes money to the bank, the city, and the U.S. Environmental Protection Agency.
Buckbee Mears manufactured aperture masks for television screens at the property until it closed in June 2004. International Electron Devices bought the company in 2005, resuming operations for a few months before closing in June 2005.
The city is owed more than $750,000 on the property in back city and school taxes and interest. The company has not paid property taxes to the city since 2005.
A Bank of India official said in October that the city is the first lien holder on the property and will be the first party to receive money when the property is sold.
The company also owes money to the EPA, which has spent over $6 million cleaning and testing the site.
International Electron Devices abandoned the property in 2005 and failed to winterize the building, causing pipes to leak and mold to grow inside the buildings, according to the EPA, which demolished 75,000 square feet of the 330,000-square foot complex because of the pollution.
The city Common Council last year decided to take the property off the tax rolls because of the environmental problems on the property and to end a process to foreclose on the property to obtain back taxes on it.
“We would probably stand a greater chance of getting back taxes through a mortgage foreclosure than through a tax foreclosure,” Bryan Gazda, city Director of Finance and Administration said in October.

 

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