Uncertainty clouds the auction set for February 3

By Bob Bumcrot

Barring last-minute legal maneuvers, the “foreclosure by sale” of the Greenwoods Theater Building will take place at noon on Saturday, February 3. The date was set by Superior Court Judge John Pickard in his judgement favoring the Town of Norfolk v. Greenwoods Associates, LLC. The Town is seeking back taxes.

According to Norfolk’s first selectman, Sue Dyer, the town is likely to enter a bid covering the total amount of taxes, interest, legal and processing fees to date, which is $136,445, plus additional legal fees that could add $8,000. Interested bidders must bring a certified check for at least $56,000, which is approximately ten percent of the assessed value of the property.

The sale is slated to be conducted as an auction by “Committee Steven Levy, Esq.,” meaning that Steven Levy, a Torrington lawyer, has been designated a committee of one to represent the court in the proceedings.  If the auction goes ahead as planned, Levy will be present when the building is opened for inspection at 10 a.m.  At noon, he will proceed with the auction in front of the building, come snow, sleet, rain or shine.

Greewoods was built in 1883 and is one of 24 buildings in Norfolk listed in the National Registry of Historic Places. In addition to a 290 seat theater on the second floor, it has space for three ground floor retail outlets, currently vacant.

According to some legal experts, the Smithies could make a last ditch attempt to stave off the sale by declaring bankruptcy. But there was no guarantee the court would accept such a move. As of January 27, when this issue of Norfolk  Now went to the printer, there was no word from the court of any change in its determination to foreclose.

The sale has been tenaciously opposed by Maura Cavanaugh Smithies, who owns the building with her husband, Richard Smithies, and who prefers to be addressed as Maura Cavanaugh. Through various court filings, the Smithies were successful in postponing a foreclosure sale first set for November 18. Another motion on January 8 in the state’s Appellate Court to stay the sale was rejected. The motion to stop the foreclosure included allegations of improper treatment of  Smithies by town officials, law firms and the court system.

The dispute, over a property tax assessment, began in 1999 with an appraisal of the property at $577,600, while the Smithies were still in the process of extensive renovations.  “This is the mother of all tax disputes in Connecticut,” says Cavanaugh. “They keep blocking due process. Taxpayers should wake up and demand accountability. If we got a mortgage to pay the taxes and then went to court, we would be aiding and abetting a host of misdeeds.”

The town has also been accused of coveting the property and using the tax issue as an excuse to try to force a sale. Sue Dyer has declined any comment while the case is in litigation. But she has openly supported a concerted effort by Norfolk’s Economic Development Commission (EDC) to mount a letter writing campaign seeking to attract bids from interested parties throughout the region.

A one-page letter describing the building’s features and some potential uses was prepared by the EDC with the help of local volunteer marketing (?) consultants. According to EDC Chairman Libby Borden, over 50 copies, each with personal notes from various EDC members, were sent to “real estate agents, arts organizations, such as the Warner Theater, and other people and groups with both the means and possible interest in the property.”

Borden says that several positive responses have been received, but so far the only party expressing a definite interest in bidding on the building is the town of Norfolk.

Photo by Lloyd Garrison.