University Heights, Ohio, bond trustee parcel receiver request OK’d

By Caroline Salls

Pittsburgh, April 15 – University Heights Ohio – Public Parking Garage Project’s series 2001A and series 2001B Cleveland-Cuyahoga County Port Authority senior special assessment/tax increment revenue bonds trustee said a receiver was appointed for tax increment financing (TIF) agreement parcels on March 25 by the Cuyahoga County, Ohio, Common Pleas Court.

According to a notice from bond trustee UMB Bank, NA, the trustee and the City of University Heights, Ohio, filed a complaint for breach of contract and foreclosure against University Heights Holding 4 LLC (UHH4) and University Square Parking, LLC, which are the owners of parcel numbers 721-01-001 and 721-01-003.

In addition, the trustee and the city filed a joint motion for appointment of a receiver for the TIF parcels to account for unpaid service payments and special assessments and ensure that rents and management fees collected on the TIF parcels are properly applied to the service payments and special assessments.

On March 25, Visconsi Realty Advisors, Inc. and its president, Bradley A. Goldberg, were appointed as receiver to take charge of and manage the TIF parcels.

UMB Bank said it also filed an amended complaint on Feb. 23 that added counts for avoidance of fraudulent transfers against the original defendants and University Heights, LLC, which is the owner of parcel 721-01-147 and the former owner of parcel number 721-01-064/065.

In the amended complaint, the trustee asserts that UHH4 transferred parcels to University Heights, LLC for no consideration “and with the intent to hinder, delay, or defraud UHH4’s creditors.”

Also in the amended complaint, the trustee claims that UHH4 and University Square Parking collected rents and fees related to the TIF parcels and fraudulently transferred them rather than apply them to payment of service payments and special assessments.

The defendants filed a motion to dismiss the amended complaint on March 27, and the trustee and the city opposed that motion.

The parties are awaiting a ruling on the amended complaint.

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