The city of Albany has begun foreclosing on two local properties: Albany Heights Apartments on Pine Aveune, seen here, and L’Jua’s restaurant on Radium Springs Road.
ALBANY, Ga. — The City of Albany has begun foreclosure proceedings on two Albany properties hoping to collect more than $2.2 million in what it contends are past-due payments.
In two separate legal actions, the city is moving to foreclose on Albany Heights, the downtown assisted-living facility, and L’Jua’s restaurant on Radium Springs Road.
Attorney Sam Engram, who has been contracted by the city to carry out these two legal actions, said that the matters are pending before Dougherty Superior Court. An October 26 hearing has been set to determine if the foreclosure of Albany Heights can continue.
The Albany Heights loan dates back to 1997 when the city’s Community and Economic Development Department granted $2.1 million in Community Development Block Grant funding to the owner of the building, Albany Ventures, LLC., court documents show.
Between that time and September 2011, the owners of the property contend that they made periodic interest payments as required by the original agreement with the city and that the city is erroneously and unjustly pursuing foreclosure despite that fact.
Engram says that the owners have neglected their financial reporting requirements and have become delinquent on their payments.
“They have not repaid the money and they claim they have, so we have to a hearing to move forward,” Engram said. “It’s our position that they also haven’t furnished various reports and financial statements that they were required to do. “We’ve just gotten tired of it. It’s been a problem from the beginning.”
Engram said that the city intended to sell the property on the courthouse steps on Oct. 2, but that attorneys for the Connecticut-based Albany Ventures, LLC., successfully motioned for a temporary restraining order to prevent the city from moving forward.
The unpaid principal, according to legal documents, is more than $2.1 million for the Albany Heights property.
The other legal action has been filed against Lamos Management, the parent company that owns L’Jua’s restaurant on Radium Springs Road.
According to a legal ad filed in The Albany Herald, the city has successfully transferred a $100,000 security deed from Capitol City Bank on L’Jua’s restaurant on Radium Springs Road.
Engram said that Capitol City Bank was in the first tier lien position on the restaurant and the city bought them out so that it could then foreclose on the property and get its financial interests out of the deal.
The ad doesn’t specify exactly how much was owed to L’Jua’s and for how much.
Engram did say, however, that it was for a straight default of payment for a loan. It is to be sold on the steps of the Dougherty County Courthouse November 6.