WISCASSET, Maine — The Maine Supreme Judicial Court on Tuesday upheld a decision by a lower court that ruled the owners of Mason Station must pay the town of Wiscasset nearly $850,000 in back property taxes.
The court affirmed a February 2013 decision by a Lincoln County Superior Court justice against Greenwich, Connecticut-based developer National RE/Source, which purchased the 33-acre property in 2004 from Florida Power & Light but failed to fully develop it.
Doing business as Point East Maritime Village, developers planned a marina, condominiums, private homes, a hotel/conference center and other retail and restaurant space on the Birch Point peninsula. Developers obtained approval to build 12 homes and built a road and two spec houses before losing their partner.
When Mason Station failed to pay property taxes, the town imposed tax liens and, in December 2012, filed a complaint against the developer for taxes owed, according to court documents.
But Mason Station failed to answer a summons and complaint within the allowed 20 days, and in February 2013, the Lincoln County Superior Court justice granted the town a default judgment against Mason Station LLC, according to the Lincoln County News.
According to court documents, Mason Station did not appeal the judgment, and in October 2013, the town seized the buildings and contents.
Sixteen months later, although Mason Station LLC still had not answered the December 2012 summons and complaint, the developer moved to set aside the default judgment, arguing that because the town had obtained, through automatic foreclosure of tax liens, ownership of properties worth more than the amount of back taxes owed, the decision states.
In the decision released Tuesday, the court said Mason Station provided no excuse — “much less a good excuse” — for failing to file a timely answer to the town’s complaint.
Also, according to the judgment, the fair market value of the properties has not been established, “and there is a suggestion in the record that environmental contamination on the properties or neighboring properties may have reduced their value.”
Wiscasset Town Manager Marian Anderson was out of the office Tuesday, and her assistant, Kathy Onorato, referred all questions to attorney Ben Smith, who with Bryan Dench represented the town.
“It really came down to what Mason Station didn’t do, not what the town did,” Smith said Tuesday afternoon. He declined to comment when asked how the town might proceed in collecting the funds.
Attorney Brian D. Willing, who with Reade E. Wilson represented Mason Station, did not return a phone call on Tuesday.