Judge orders sale of Pamelia property housing 2 businesses

A state Supreme Court judge has ordered the foreclosure sale of a town of Pamelia property that has North Country Farms Inc. and Jreck Subs Inc. as tenants.

A former owner of the property said Tuesday a deal is in the works that may allow both businesses to remain there.

Watertown Savings Bank foreclosed on Mahar Partnership LLC, Heathrow, Fla., in May, claiming it was owed more than $500,000 on two consolidated mortgages. Judge Joseph D. McGuire has ordered the 3.6-acre parcel, which includes an office building, sold at public auction Tuesday.

Mahar was owned until recently by Seaway Valley Capital Corp., according to Thomas W. Scozzafava, the corporation's president and chief executive officer. He said the company was sold in mid-October to Route 37 Ventures LLC, of which former Seaway Valley officer Christopher M. Swartz is a member.

Mr. Swartz was the founder of North Country Hospitality Inc., which also owned Mahar. According to court documents, Mahar took out a $236,250 mortgage with Watertown Savings Bank for the Route 37 property in May 2002 and a second mortgage for $313,056 in November 2006. The mortgages were consolidated for a total indebtedness at the time of $525,000.

In June 2008, Seaway Valley acquired all of the assets of North Country Hospitality, including Mahar, according to Mr. Swartz. With the property now in foreclosure, Mr. Swartz said, he and others are exploring regaining ownership.

"I am actively working with some groups, and we're in communication with the bank, to see what can be worked out," he said.

On Oct. 15, Seaway Valley sold Mahar to Route 37 Ventures. The agreement calls for the purchase price to be 100 percent of all outstanding debts associated with the real property at 24685 Route 37, including the money owed to Watertown Savings Bank. A referee in the foreclosure action, Brantingham attorney Susan J. Kraeger, determined the total amount due the bank as of Sept. 1 was $506,328.

Mr. Swartz said it has not been determined whether the group of potential investors he is working with would attempt to buy the property from the bank before the auction or wait to become a bidder at the auction.

If successful, he said, it is the group's intention to keep Jreck Subs and North Country Farms, a business that mills wheat and packages flour and muffin and pancake mixes, as tenants.

"I think the situation is they both have valid leases and they'll continue to be tenants," Mr. Swartz said.

The auction of the property is scheduled for 9 a.m. Tuesday in the vestibule of the Jefferson County Court complex, 163 Arsenal St.