ENM Council deals with lien on property

At its Thursday, July 27, meeting the Elko New Market City Council held a closed meeting to discuss litigation related to the filing of a mechanics lien.

City Administrator Tom Terry explained that the city first became aware of the lien on Tuesday, July 25. Avant Private Communities LLC filed a lien for $1,096,000 on the city’s property of Dakota Acres. A mechanic’s lien is a security interest in the title to property for the benefit of those who have supplied labor or materials that improve the property. The lien exists for both real property and personal property.

The action comes about a month after the city turned down a purchase agreement from Avant Private Communities LLC in favor of a letter of intent from NorthCo Development LLC. That business formed a new limited liability company, Syndicated Properties, LLC, for the purpose of the property acquisition and development of Dakota Acres. At the July 27 meeting the council did approve 4-0 a purchase agreement between it and Syndicated Properties, LLC.

Terry said the city first began working with Avant Private Communities LLC in November 2015 on Dakota Acres. The property includes 13 platted townhome lots, two outlots containing a total of 5.29 acres and a singlefamily lot. The city had Avant put down a $5,000 non-refundable deposit that was to go into a purchase agreement, but was never entered, and a $15,000 escrow. The city returned most of that escrow.

Terry said he can’t speak to the motive for Avant Private Communities LLC filing the lien. “The city will be evaluating its options and our response,” he added.