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Posted on Wed, Apr 21, 2010 : 6:02 a.m.

Georgetown Mall averts tax foreclosure after loan sold, $517,569 payment

By Paula Gardner

A complex series of transactions is giving Georgetown Mall’s owner a reprieve from pending foreclosure over unpaid taxes from 2006 and 2007.

As a result, Washtenaw County collected $517,569 in back taxes, and a mortgage on the 6.5-acre property was sold to a new lender.


Paula Gardner |

An additional $300,000 in back taxes still are due, with the next foreclosure deadline already set for February 2011.

Harbor Georgetown LLC - the mall’s ownership entity, led by Craig Schubiner of The Harbor Cos. in Bloomfield Hills - passed the March 31 deadline to pay the back taxes or face forfeiture of the property to Washtenaw County Treasurer Catherine McClary.

This spring’s redemption period deadline passed without payment from either Schubiner or a lender.

However, the tax foreclosure was stalled because the servicer of a loan secured by the mall is embroiled in bankruptcy and litigation in Nevada. The bankruptcy prohibited the tax foreclosure, according to McClary.

However, McClary worked with the bankruptcy trustee to extend the deadline for the foreclosure to May 21, allowing the trustee to sell the mortgage loan.

That move also cleared the way for the county to collect the back taxes from the buyer of the loan, instead of taking possession of the property and putting it up for auction later this year.

“I believe that collecting the taxes are the best thing for the community,” McClary said.

However, she acknowledged that community still has concerns over the future of the property. The mall, located on Packard Road north of Eisenhower, has been vacant since Kroger closed its store there in the fall.

“I don’t believe that purely collecting the taxes are going to change the blight,” she said. “There’s clearly blight there.”

The loan was sold to Value Ann Arbor Management LLC, according to documents. The state has no record of that company, according to its Web site and a state employee.

Schubiner did not identify the new lender. However, he said in an email that he remains the property’s owner.

“Harbor Georgetown remains the borrower on the loan as well as the owner of the real estate. We are working on new ideas for the site and will share those with the community in the coming months,” Schubiner said.

The property is valued at $4.6 million, based on its 2010 state equalized value. Schubiner paid $6.1 million for it in 2001, according to city records.

Meanwhile, the city’s Georgetown Mall Citizen’s Committee will hold its first meeting at 6 p.m. Thursday in a 6th floor conference room at City Hall.

The five-member committee, appointed in February, includes McClary.

“Their role will be to gather information that we have and provide information about the site so that we can assure that the property is adequately maintained and secured,” said Jeff Kahan, city planner and staff liaison for the committee.

Paula Gardner is Business News Director of Contact her at 734-623-2586 or by email. Sign up for the weekly Business Review newsletter, distributed every Thursday, here.


Georgetown resident

Sun, Jul 25, 2010 : 8:25 a.m.

The city should confiscate it, and sell it to a developer. There is a shortage of housing in Ann Arbor, and too much commercial property that is vacant. A new developer could put up housing in that spot. Townhouses or garden apartments, plus a nice playground. We are talking about 6.5 acres here. There are too many people who work in Ann Arbor and cannot afford to live here. Why are we letting a scumbag landlord get away with this when we could be building housing that would help people and getting the property back on the tax rolls? He is still several years behind on his taxes.


Sun, Apr 25, 2010 : 7:40 a.m.

So they'll just keep making enough payments to keep the county happy and it'll continue to sit there rotting. "I believe that collecting the taxes are the best thing for the community, McClary said." And I believe that bringing in a bulldozer would be the best thing for the community that is primarily affected - mine. I just walked by it yesterday, and that $500K didn't make it look any different - it's still an eyesore and a disgrace.


Fri, Apr 23, 2010 : 10:22 a.m.

Put the Dick's Sporting Goods store here!


Wed, Apr 21, 2010 : 10:22 a.m.

It's kinda funny on how many people yell to have that place torn down yet when it comes to the Thompson building in Ypsi so many want to keep it ( and my guess is most of those people don't live in Ypsi )


Wed, Apr 21, 2010 : 8:30 a.m.

Next foreclosure deadline February 2011? Another year of blight. I don't believe harbor georgetown will do anything to redevelop this property.