Song of the Reptile

Fall River taking aim at deliquent taxpayers

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By Michael Holtzman

Herald News Staff Reporter

Posted Jan 08, 2010 @ 10:47 PM

Last update Jan 09, 2010 @ 06:21 AM
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FALL RIVER — Hundreds of tax scofflaws have one month to pay their fiscal 2009 property taxes or the city will lien their properties, Collector Shannon L. Lyonnais reported.
She’s placed a legal advertisement in Sunday’s Herald News listing 372 property owners to pony up $982,575.55 by Feb. 8 at 9:30 a.m. or risk legal proceedings prescribed under state law.
Liens will be placed at that time at the city’s Registry of Deeds.
Lyonnais reported being bolstered by response to her warning letter of Oct. 21 informing owners the listed properties are in jeopardy of having liens placed on them.
At that time, just more than $1.8 million of real estate taxes was owed.
In the ensuing 2½ months, through the end of business Thursday, the city received 423 payments totaling $827,720, leaving the nearly $1 million unpaid balance.
The bad news was that the amount of unpaid taxes this year is close to double the amount owed a year ago, perhaps reflecting the poor economy and unemployment, Lyonnais said.

Last February she mailed 614 letters seeking $1.1 million in back taxes.
Close to $600,000 was paid off following the warning letters were sent, leaving a legal advertisement for $533,079 on 294 parcels on last March 21.
With this year’s listing roughly $460,000 more than a year ago when Douglas Industries had the largest tax debt at about $27,000, several owners are delinquent by far more than that.
Essentially all in the top tier are commercial holdings.

Five Kings Associates LLC owes $109,471 for its 6-acre 386 Kilburn St. granite mill property bought for $2 million in 2004. The company owes another $6,265 for 379 Kilburn St.

A familiar name appears next among highest delinquent taxes: Quaker Fabric, which filed for bankruptcy protection and laid off the 930 remaining workers in 2007, owes $85,000 for properties at 387 Quarry St. and Brayton Avenue, where there is 8½ acres.

Homeland Realty LLC owes $76,191 for its 465 Sykes Road property on 8.6 acres. The company bought the property in 2000 for $258,000 and built a steel industrial building the next year.

The Greater Fall River Development Corp. bought the property in 1980 for $345,712 and sold it to Homeland 20 years later. It’s assessed for $4.1 million, including $1 million for the land.

Colville Properties owes $42,021 for 37 Hargraves St., another $6,113 for 63 Hargraves St. and $2,915 for 270 Fifth St., a total more than $51,000.

The company owing for the most properties of consequence is Hanover Properties LLC. The company owes about $35,000. But there are outstanding taxes on 16 properties, an average of about $2,000 each and most appearing to be investment apartment rentals, assessors’ records show.
Brayton Avenue Development owes taxes on many parcels, all of them listed for $342.55.
Other owners with significant tax obligations include:


— Sandra Botelho, 45 William St., $33,519.
— North American Acquisitions, Weaver Street and 221A and 221D Weaver Street, three properties, total of $21,790.
— Magellans Cousin LLC, two properties, Weaver Street and 100 Weaver Street, total of $11,596.
— Pauline Management Inc., 43 Lowell St., $10,257.
— Pleasant St. Condo Association, 212 Pleasant St., $20,821.

While customarily the city does not take subsequent legal action on properties liened in prior years, a few properties and owners listed last year appear on this list, including: Douglas Properties, which runs a concrete business in the city and gravel operation in Tiverton.
They owe about $38,000 on eight properties, including Kay Street with 3.5 acres, $25,661.
Also listed last year and again this year was Water Street Café owner Jeanne Azar, 56 Water St., $12,736.

Two others listed that have been in the news in recently include:
— Gregory A. Brilhante, Diman School Committee legal counsel, who last month sought a contract extension, 18 Salisbury St., $1,939; 114 Adams St., $2,901, and 31 Almy St., $1,210, total of about $6,100.
— Cindy Rego, sister-in-law of John Pavao and sister of Debra Pavao, who were charged by Florida authorities in a multi-million mortgage scheme that awaits trial, 2160 South Main St., $1,666.
The city has had a policy of not collecting delinquent taxes for amounts less than $30. There are roughly a half-dozen or fewer in that category.
On the reverse side of the ledger, Lyonnais said she expects to see a legal ad published in the next few days of roughly 300 property owners who have not cashed checks the city issued for real estate abatements and for other reasons.(Note: Called "TAILINGS"...once again Mr. Holtzman shows himself, and the HN, incapable of thorough reporting on municipal finance issues)
The amount totals $65,981.47, with the average roughly $200 and many less than $100.
Only two of the uncashed checks are for more than $1,000: Carlos Costa, 31 Bourne Road, Swansea, $1,254.84; and Tilly Realty Associates, 386 Kilburn St., $6,157.50.

Several checks are for less than a sawbuck, such as $7.09 for the Eagle Restaurant, 45 N. Main St.

For reasons Lyonnais could not explain, 386 Kilburn St. property owner of record Five Kings Associates is listed as owing more than $100,000 in back taxes through June 30.

E-mail Michael Holtzman at mholtzman@heraldnews.com.

Typically, once lien letters have been sent, a good portion of overdue taxes are paid by those owing monies to the municipality. However, there are always those who absolutely will not pay until the Sheriffs just about to say "SOLD", at the auction of properties. In most cases these are businesses or individuals holding property for investment purposes waiting until the last possible moment to pay their property taxes.

But, regrettably, there are those instances when even the most legitimately minded individuals and businesses are unable, for whatever reasons or combination of reasons, to pay what they owe.

Having been responsible for property takings while a Municipal Finance Director, when there was any chance an individual would be able to pay the taxes owed at some point, every effort was made to accommodate the property owner, especially in the instance of a single family property where a tax taking would essentially render the family homeless. Once a lien has been filed, and assumming additional unpaid taxes have been properly added to the lien, the municipality will eventually be paid, either directly by the owner or in the event the property is sold and/or transferred in any way. Only  federal tax liens, state tax liens and child support liens take precedent over municipal liens. Uncle Sam ALWAYS gets his money!

All the other properties should be moved to auction as soon as possible. This is the best way to not only obtain the taxes through turnover of the property, but is the most fair policy for the overwhelming majority of property owners in the municipality. One of the foundation principals of property tax policy is that the policy be fair to all, in its determination of amount owed and in it's collection.

I never had the idea that it was my role to carry delinquent tax payers forever. The City does not win, nor does it do well, when it plays the role of LANDLORD, so to speak. At some point it becomes a careful balancing act, always having to err on the side of taking the property. Single family owners were the only individuals who received such leeway, and that was because I knew the City would eventually get it's cash from the property. All others had to be made to pay in  an expidited manner.

It was at this point, where the current Tax Collector is now - and it sounds like she's doing a solid, good job, from what I can see and hear - when the local politicians would make their way to casually "drop bye" to attempt to intercede on behalf of attorneys or business owners and the amounts of taxes they owed. I always found this quite distasteful. It was always some form of "Couldn't you just give them more time?" NOPE! I can tell you in all my years of being in charge of property tax administration, I never was approached by politicians on behalf of a single family home owner, or someone living in a duplex, for example, who lived on one side and rented the other. These people would usually make their way to me on their own, and I did everything possible to assist them. I think it's a sad reality that local politicians would rather move heaven and earth to lobby you for a business entity, but not individuals.

I sincerely hope that Ms. Lyonnais has not been approached by some of the more reptilian members of our fine and upstanding City Council. However I am willing to bet that she has been, if not right now, then  during the last two years under the Great Pretender and his slithering friends among the City Council. By their past votes ye shall know them.

City Councilor at Tax Lien Time

Two things of I took notice of while reading the article. The first was this sentence:

"The company owing for the most properties of consequence is Hanover Properties LLC. The company owes about $35,000. But there are outstanding taxes on 16 properties, an average of about $2,000 each and most appearing to be investment apartment rentals, assessors’ records show."

These types of investments often have oodles of professional types involved, holding onto the properties for tax writeoffs of one sort or another, and often have more than sufficient resources to pay the property taxes owed. It is precisely these type of properties, with local professional types who contribute to local politicians, which should be taken to auction first. They are also the type of property over which the reptiles will approach the Tax Collector . DISGUSTING! While real families try to keep roofs over their heads after loosing their jobs, these paracites, trying to cull favors, sic their friendly pols on hard working public servants. Beacuse let me tell you folks, there is no such thing as a gentle threat. And a visit from a City Councilor to help a friend out is just that. It's pernicious behavior.
These owner/investor's will sell to another entity or persons to retain the loss for their clients tax situation, if nothing else. So either way, get the property because Fall River needs the property taxes and these investors, as a class, will not be hurt one way or the other!
 The second item of note was the following:

"Two others listed that have been in the news in recently include:
— Gregory A. Brilhante, Diman School Committee legal counsel, who last month sought a contract extension, 18 Salisbury St., $1,939; 114 Adams St., $2,901, and 31 Almy St., $1,210, total of about $6,100.
— Cindy Rego, sister-in-law of John Pavao and sister of Debra Pavao, who were charged by Florida authorities in a multi-million mortgage scheme that awaits trial, 2160 South Main St., $1,666."

How is it that a close friend of The Great Pretender, Mr. Gregory A. Brilhante, Diman School Committee legal counsel, whose Correia stooges attempted to bless with an all new contract extension until the whistle was blown by responsible adults, can be mentioned in the same breath as some of the more notorious, entirely disreputable Fall River miscreants? I'm not sure, but it tends to explain the panic with which the outgoing mayor sent forth his own reptilian forces to secure Mr. Brilhante's contract extension. It appears that Mr. Brilhante is a might overextended. But, I have a suspicion he's good for the cash. Never heard of a decent attorney who was broke. NEVER...have you? My advice to the Tax Collector...go after these two with EXTREME PREJUDICE...but legally, of course!

My good wishes to Tax Collector Lyonnais. Keep gettin' after them. We need the money!