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Academy Theatre auction canceled

December 03, 2010|By ANDREW SCHOTZ | andrews@herald-mail.com
  • A foreclosure auction scheduled for Thursday to sell the Academy Theatre Banquet & Conference Center at 56-58 E. Washington St. in Hagerstown was canceled.
File photo

HAGERSTOWN — A foreclosure auction scheduled for Thursday to sell the Academy Theatre Banquet & Conference Center at 56-58 E. Washington St. in Hagerstown was canceled.

City Theater LLC, which owns the building, owed more than $560,000 on the mortgage as of October, according to documents on file at Washington County Circuit Court.

There was no explanation on Thursday of why the auction was canceled.

Milton N. Stamper, who is part of the limited liability corporation, declined to comment when reached by phone.

Michael L. Guessford, who also is part of the LLC, didn’t return a message left at Always Ron’s Restaurant, which he owns.

A July 2007 deed shows that City Theater LLC had to repay a $384,000 loan to the Maryland Department of Housing and Community Development.

In August 2008, City Theater LLC was approved for another $174,000 from the state to pay for construction costs, according to court documents.

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In July 2009, City Theater LLC was allowed more time to repay its mortgage.

Last month, a request to proceed with foreclosure on the property was filed.

As of Oct. 1, City Theater LLC owed $564,751.89, including interest and late charges, according to court documents.

Norman Swoboda, the deputy director of housing and community development’s Division of Credit Assurance, confirmed on Thursday that the auction was canceled, but said he couldn’t comment on the reason.

Swoboda said City Theater LLC’s loan was through the department’s Neighborhood Business Works Program.

According to a department fact sheet, the program’s loans “provide flexible gap financing to small businesses locating or expanding in locally designated neighborhood revitalization areas throughout the State.”

Financing of $25,000 to $500,000 is available, the fact sheet said. Loans are based on need and may cover up to 50 percent of the total project cost.

Potomac Playmakers performs in the theater, and Applause Catering uses the second floor.

The City of Hagerstown owned the property until 2007, when City Theater LLC bought it for $110,000.

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