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Orem threatens to acution off Midtown Village

(Daily Herald) Orem city officials are threatening to hold a foreclosure auction of the stalled Midtown Village unless its developers pony up $430,000 by Nov. 14 to fund work done on underground public parking.
"We've filed a notice of default with the county recorder's office on Aug. 14, and within 90 days of that period, if someone makes the assessments, then the foreclosure auction will be stopped," said Steve Earl, assistant city attorney for Orem. "We have liens against 152 residential units in the north and south towers, except for four units that were sold, and about 139,000 square feet of commercial space."
The assessments, which came due on June 1, total $2.31 million for all the condo units, while the assessments against 139,000 square feet of commercial space total $3.34 million. Of the 152 units, 32 have temporary certificates of occupancy, six are close to getting those, and 114 are in various stages of completion.
But Midtown's developers, which haven't sold enough condos or commercial space to date and are therefore responsible for paying the annual assessments for about 20 years, failed to meet the June payment deadline.
"If the project does indeed go to a foreclosure sale, the city won't bid more than $5.65 million for it," Earl said. "Our starting bid and the maximum we will bid will be equal to the amount of assessments owed on the 152 units, which comes up to $15,173 per unit, and the starting bid for the commercial space is around $24 per square foot."
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