Surry County Tax Administrator brought an armload of business before the board of county commissioners during its lengthy Monday night meeting. She gained approval to move ahead on foreclosure sales of a dozen properties and to establish a period for Creekside Cinemas to pay its back taxes before proceeding with foreclosure.
“We have worked with this account for several years” on collecting delinquent taxes from the owner of Creekside Cinemas, FirstRun LLC, on the property at 605 E. Bluemont Rd., Mount Airy, where the movie theater lies. Harrison explained, “The reason I am bringing you this account to recommend foreclosure is because they owe $86,000... He is our top owing taxpayer in the county.”
“I have emailed, I have called, I have done everything I can to try to collect these taxes,” she told the commissioners. Under normal process, a taxpayer must be five years delinquent and she noted that only four years are delinquent and the company owes the current year’s taxes as well.
“They will make a payment occasionally; the last payment in our office was January 2024. Due to the amount owed and issues of collection of this property, I am requesting from you to proceed with the foreclosure,” she said.
“I know it’s a lot of money so today I made a final attempt to contact FirstRun LLC, again, and the Mr. Shultz said he would pay the money; he was getting a loan and he’s going to pay the money in 30-60 days,” Harrison told the board.
Commissioner Eddie Harris asked if the theater was actually open and showing movies. Harrison answered yes but that not all the theater screens were in use; Vice Chair Mark Marion offered an aside that some rooms had issues with heating or air.
To that end, “He’s hoping to do some renovations and he’s going to try to make it something better for our community,” she added.
Chair Van Tucker wanted to know if that meant a payment would be made within 60 days, or if the debt would be settled in that time frame. “He said he would pay it in full,” she replied.
The goal is for FirstRun LLC to get the loan and pay off the outstanding debt she said, “He doesn’t want to go into bankruptcy, and he thinks that if I send this to foreclosure that it may jeopardize his loan — that’s what he told me today. He’s told me this numerous times, but I told him I was bringing this to the board.”
Commissioner Bill Goins suggested the board allow the company the 60 days to seek the loan and satisfy its debt to Surry County.
However, Commissioner Larry Johnson asked how long that would add to the process that is over four years in the making at this point adding, “He’s known for how long that he owes (this debt)?”
Harris chimed in and asked if the business owner was aware of the foreclosure fees and attorney fees that would follow if the matter progressed. Harrison replied the firm does because she asked Kania Law Firm to send a demand letter with such information which they did on June 5; there was no reply to that letter.
County Manager Chris Knopf offered a path forward the board took, to authorize Harrison to advance the foreclosure process on day 61 after having notified FirstRun LLC by certified mail and with direct phone call from Harrison’s office.
According to the Surry County GIS website, the property at 605 East Bluemont on which Creekside Cinemas rests has an assessed value of more than $2.8 million.
FirstRun LCC was also listed by the City of Mount Airy in their advertisement of unpaid tax liens for year 2021, 2022, and 2023.
Sale of foreclosed properties
Harrison also informed the board that her office and the Kania Law Firm are ready to proceed on the foreclosure sale of a dozen properties across the county. The Tax Office has made numerous attempts to collect on delinquent taxes from these properties and Harrison said they have exhausted all means to collect; the board approved the sales to move ahead.
Surry County uses the services of the Kania Law Firm for these matters and Harrison said they would be ready to proceed on the sale of these properties in late September, early October. She had recently visited the properties and brought with her photos taken by appraisers so the board could see what was being discussed.
Vice Chair Mark Marion brought one property to Harrison’s attention, a 0.312 acre piece of land off East Pine Street with a tax value of $6,000. Marion queried why the proposed opening bid on that property was set at four times the tax valuation — $24,100, “That’s a big discrepancy.”
“That’s a shame. I understand it’s because of foreclosure frees... This is a vacant piece of property, and this is the only way I can get the property back on the scrolls,” Harrison explained.
She checked that day to see when the last time property taxes had been paid on that piece of land and found, “We have been writing off the taxes for years on this property.”
Commissioner Larry Johnson knew that it was unlikely the recommended opening bid would be met or in some cases that any bid would be offered. He asked, “What happens when no one bids?”
At that time, an unsold property reverts to county ownership she said, and then will be sold as a surplus property to satisfy any portion of the outstanding tax amount owed.
With the board’s approval in hand, Harrison said that Kania Law Firm will post signs two weeks prior to the sale of the properties and then they will be sold at the Judicial Center. More information and listing of foreclosed properties for sale can be found on the Kania Law Firm’s website.
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