Russell 150 site auction delayed

View larger image Pipes sit on the site of the Russell 150 project off U.S. 522 nearly a year ago. At that time, they had been in the same place for more than a year. Frederick County Circuit Court Judge John E. Wetsel Jr. granted a motion to delay an auction of the property. Dennis Grundman/Daily

Judge grants motion as questions arise over priority of liens

By Alex Bridges -- abridges@nvdaily.com

WINCHESTER -- Unresolved matters surrounding the Russell 150 project have set back efforts to recoup millions of dollars in unpaid debt from the stagnant development.

An auction of the 150-acre site off U.S. 522 scheduled for Monday morning at the Joint Judicial Center on North Kent Street has been postponed indefinitely, Roderick B. "Rod" Williams, county attorney for Frederick County, said Friday. The sale was to enforce mechanics' liens against the property.

Judge John E. Wetsel Jr. granted a motion in Frederick County Circuit Court on Tuesday from Perry Engineering to postpone the auction of the 150-acre property off U.S. 522.

The judge consolidated civil cases filed by Perry and Greenway Engineering, each of which sought to enforce mechanic's liens. But a question arose about the priority of the liens against the property, according to the order. Also, a material dispute arose over whether Frederick County has a lien against the property for special assessments under state code.

Attorneys H. Edmunds III and Cary M. Craig Jr. represented Greenway and Perry, respectively, at the hearing. Thomas M. Lawson appeared as legal counsel for Russell 150 and James A. Drown as special commissioner, according to the order. Williams attended the hearing for the county.

"The court ultimately decided that it had a number of questions it needed to have answered and it has set a trial date of July 18 to answer those questions and directed the parties to make submissions in advance of that, proposing answers to those questions and whatnot," Williams said.

Wetsel set a trial for July 18, according to the order, to resolve issues of who owns the Russell 150 property and in what proportions; what liens exist against the property by whom, in what amounts and their priority; whether it is necessary to sell the real estate to satisfy such liens and if the proper parties are before the court to enable it to sell the property as sought in a bill of complaint.

Williams explained the judge wanted information about the status of liens after a sale.
Frederick County Treasurer C. William "Bill" Orndoff Jr. filed a complaint in the circuit court Thursday that brings suit against Russell 150 and other defendants for the collection of delinquent and unpaid real estate tax liens.

Orndoff's complaint asks the court to schedule a tax sale for the property, the process for which can take an undetermined length of time, Williams said.

The complaint names Greenway and Perry as defendants along with SFC LLC and trustees Joseph H. Chopp and James G. Smalley. Russell 150 includes three tracts, consisting of about 120.4 acres, 29.7 acres and .31 acres.

Frederick County has assessed real estate taxes on the three tracts for the tax years of 2010 and 2011 that remain unpaid, according to the complaint.

Real estate taxes owed on the property total $82,741 for the two years, the complaint states.

However, the Russell 150 Community Development Authority Assessments total $5,975,396, according to the complaint.

Greenway has interest in the property by way of mechanic's liens in the total amount of $13,953,165, dating back to 2007, according to the complaint. Perry hold liens totaling $2,301,372 from 2008, the complaint notes.