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WILKES-BARRE — A city property with $271,400 in unpaid real estate taxes dating back more than a decade was removed from Luzerne County’s August auction Monday after an owner complained he was not properly notified of the sale.

The 56,600-square-foot brick building on Oregon Street is owned by brothers Howard and Jeffrey Rockman and had housed offices and bakery equipment supplies for Beroc Inc., a family business established by their father, Bernard, who also is listed on the deed, according to the family and property records.

Howard, who lives in Fresh Meadows, New York, appeared before county Judge Fred A. Pierantoni III on Monday and argued his due process rights were violated because he never received county tax claim notices about court proceedings involving the property.

In one instance, records indicated a woman had accepted a certified notice intended for him. But he said he did not know the woman and never designated anyone to accept mail on his behalf. He said he learned of the property’s listing in an Aug. 10 sale through a news article July 17.

Attorney Dyan E. Dinstel, from county tax-claim operator Northeast Revenue Service LLC, told Pierantoni the court has legal authority to keep the property in the auction because Howard is aware of the sale and had an opportunity to appear before a judge to raise objections.

But Pierantoni agreed with the property owner’s argument and pulled the structure from the sale, citing insufficient notification.

Northeast Revenue representatives said they are considering appealing the ruling to Commonwealth Court. If the ruling stands and taxes remain unpaid, the property may be added to auctions in October or April 2018.

‘Put us out of business’

The county can list properties for auction if taxes are two years past due unless the owners are complying with repayment plans, a judge grants more time, or the property is involved in an active bankruptcy case.

The Rockman property was kept out of past sales due to two bankruptcies, a court action attempting to block a sale, and two repayment plans that were not honored, according to county officials.

During the hearing, Northeast Revenue attorney Dinstel pressed Howard Rockman on what action he has taken to pay off the debt.

Howard said he is trying to sell the property to cover the amount of taxes owed.

She asked if he has publicly listed the property for sale.

Howard said he has not, but he has been seeking buyers through word of mouth and reaching out to interested parties. He maintained he would have a “gun to my head” negotiating a sale if the property remained in the Aug. 10 auction.

His brother, Jeffrey, a local attorney, said he was unaware of his brother’s court filing Monday but raised concerns of his own. The brothers said they are estranged.

Auction bidders may be unaware the cavernous structure requires costly repairs and utility expenses for occupancy, Jeffrey warned.

Bidding for the Oregon Street property had been set to start at $6,206 in the Aug. 10 free-and-clear auction, when all back taxes and liens are forgiven.

City officials informed Jeffrey last year the property had to be vacated because the family would not repair the fire sprinkler system, he said.

Jeffrey said the sprinkler system had not been operational since the family purchased the structure for $300,000 in 1995. The Rockmans could not afford the estimated $100,000 for sprinkler repairs and monthly bills of $6,000 to $7,000 to heat the entire building so the sprinkler pipes would not freeze, he said. The Rockmans kept most of the building unheated because it was primarily cold storage for non-flammable bakery items.

“They put us out of business,” he said. “We were keeping it in productive use and employed four people.”

Both brothers also said trespassers have entered the building more than a dozen times, in some cases stealing copper wiring.

Howard told the judge no arrests were made in these cases, including two instances when the company furnished the license plate information of a vehicle fleeing the scene and tools left behind that may have contained fingerprints.

Jeffrey blamed the debt on excessive taxes. But he said the family did not pursue an assessment appeal after the countywide reassessment in 2009, which valued the property at $507,900, because a past appeal of city taxes cost thousands of dollars in legal and appraisal fees. Separate appeals are necessary because the city opted against using the county’s values for city taxes after the reassessment.

The combined 2016 tax bill for the property, before penalties and interest, was $15,492 — $2,918 for the county, $4,014 for the city and $8,560 in school levies.

The structure previously housed Nicholson Steam Trap Inc., a manufacturing firm that moved operations to another state in 1994.

This 56,600-square-foot former manufacturing building on Oregon Street in Wilkes-Barre was removed from Luzerne County’s August back-tax auction Monday after an owner argued he did not receive timely warning of the sale.
https://www.timesleader.com/wp-content/uploads/2017/07/web1_rockman.jpeg.optimal.jpegThis 56,600-square-foot former manufacturing building on Oregon Street in Wilkes-Barre was removed from Luzerne County’s August back-tax auction Monday after an owner argued he did not receive timely warning of the sale. File photo

By Jennifer Learn-Andes

[email protected]

Auction information

A listing of properties eligible for the Aug. 10 back-tax auction has been posted at www.luzernecountytaxclaim.com.

Reach Jennifer Learn-Andes at 570-991-6388 or on Twitter @TLJenLearnAndes.