Pontiac Convention Center faces foreclosure
JANESVILLE Facing a foreclosure suit, the owner of Pontiac Convention Center in Janesville has listed the property for sale.
A former owner, however, said Tuesday that he believes a sale is in the works and the new owner would honor all bookings.
Johnson Bank filed the foreclosure suit in August, saying that Mansur Development, the convention center's owner, did not meet a July deadline to pay off mortgage notes totaling nearly $2.1 million.
The two forbearance notes were drafted in March. The first required monthly payments leading to a balloon payment of the balance by July 1. The second required a payment of nearly $1.2 million, also on July 1.
In its suit, the bank said neither of the notes was satisfied and that on the due date the bank was owed more than $2.1 million in principal and interest.
In forbearance agreements between a mortgage lender and delinquent borrower, the lender typically agrees not to exercise its legal right to foreclose on a mortgage and the borrower agrees to a mortgage plan that will—over a certain time period—bring the borrower current on his or her payments.
The suit names Mansur Development, Pontiac Convention Center and KANDU Industries as defendants. KANDU leases space in the center to operate a portion of its Best Events Catering business.
Rod Oksuita, Best Events' food service director, said he's not surprised his company is named as a defendant in the suit because it's standard operating procedure for lenders to file against anyone with connections to a primary target.
Best Events, he said, has an agreement with Mansur Development to administer and run the center's events.
"We've, of course, been in touch with Mansur and the bank so that we can continue to honor our bookings," he said. "We're confident that we will be able to do that, and we look forward to a smooth transition that works for everyone well into the future."
In the filing, KANDU's attorney said the company has a lease for space at the center, has made significant investments at the facility and wants to continue to use the center through legal proceedings.
Jim Mansur of Mansur Development was unavailable for comment Tuesday.
His brother Dave Mansur is a former partner in the Pontiac Convention Center, 2809 Pontiac Drive.
"As of right now, we believe we have a buyer," Dave Mansur said. "I personally have no interest in the convention center, having sold my interest to Jim, although I do have the building listed for sale as a real estate agent."
On his website, Dave Mansur lists the nearly 19,000-square-foot building for sale for $1.6 million.
Dave Mansur declined to disclose details but said he believes there could be a buyer by the end of this year.
"My understanding is that the new buyer has the intention at the very least to honor everything that's on the books no matter how far out it is," he said.
According to the Rock County Treasurer's Office, the land and buildings are assessed at $1.33 million and have an estimated fair market value of $1.36 million.
Property taxes have not been paid for tax years 2010 and 2011, and the delinquency could be wiped out with a payment of $73,666 by the end of the month, according to the treasurer's office.
In it's foreclosure filing, Johnson Bank has asked for a sheriff's sale of the property with proceeds going to the bank. The bank's attorney declined comment Tuesday.
The Mansur brothers bought the property in 2006, shortly after the long-time former tenant, Skatin' Place, closed.
The Mansurs made significant investments in the property to make it available for meetings, weddings and other gatherings.