AV Water assets sold in foreclosure process
FARMINGTON — Stonetown Animas Lenders has taken ownership of the Morningstar water system that was previously owned by AV Water Co., according to court documents.
The Morningstar water system serves residents in Crouch Mesa and surrounding areas.
Stonetown loaned AV Water’s parent company, Animas Valley Land and Water, $5.7 million in 2014. When that money became due, AV Water was unable to pay.
At the time of the sale of the assets, AV Water owed more than $4.6 million plus interest to Stonetown, according to court documents.
The lending company took ownership of the water system and real estate assets earlier this month through a foreclosure process.
According to court documents, one lot that previously belonged to Animas Valley Land and Water was given to the city of Farmington during the process. The land was given to the city in exchange for forgiveness of $8,000 of debt incurred by AV Water for water purchases. The lot was given to Farmington prior to the sale of assets at the request of the court-appointed receiver.
Stonetown filed for foreclosure in January 2017 and asked for the properties to be sold through a court process.
Since January 2017, a court-appointed receiver that Stonetown requested has been managing the water system and collecting rent payments.
Stonetown excluded the Harvest Gold water system east of Bloomfield from its foreclosure request and the system was transferred to the community and is now owned by Apple Orchard Mutual Domestic Water Users Authority.
Stonetown was the highest bidder for assets during the court sale at the end of March. The sale was finalized at the beginning of this month, according to court documents. The assets were sold in three lots. Stonetown was the highest bidder on each of the three lots. It bid a total of $2.5 million for the three lots. The money went into paying off the debt AV Water owed Stonetown.
Hannah Grover covers government for The Daily Times. She can be reached at 505-564-4652 or via email at email@example.com.