Court Oks Diocese Property Sales

Gallup Independent
July 3, 2015

http://gallupindependent.com/

The Diocese of Gallup’s request to auction unwanted real property in Arizona and New Mexico was approved by U.S. Bankruptcy Judge David T. Thuma June 26.

The purpose of the property auction is to help the Gallup Diocese fund its plan of reorganization, including payment of administrative expenses.

With Thuma’s approval, the Gallup Diocese will now hire Tucson Realty & Trust and Accelerated Marketing Group, a California firm, to conduct the auction and an accompanying media blitz designed to promote the auction. Statements submitted by both companies assert the firms have “extensive experience marketing difficult, rural properties” in the Southwest.

If the auction is scheduled as diocesan attorneys first proposed, it should be held within 90 days of Thuma’s order, or before the end of September.

The Diocese of Gallup listed 38 properties, made up of 116 land parcels, on its initial auction list. In its motion, the diocese said it might add or delete properties from the list as the marketing and sale process proceeds.

The initial auction list included 18 parcels in Apache and Navajo counties in Arizona, and 98 parcels located in nine New Mexico counties, including 64 parcels outside of San Rafael, in La Vega Estates. Six parcels are located in Gallup.

According to Thuma’s order, Tucson Realty & Trust and Accelerated Marketing Group will be paid “the sum of $45,000 or such lesser cost as may be the actual expense” of marketing the properties. The companies will also retain a 10 percent buyer’s premium from the auction for each property sold.

St. Bonaventure dispute

No one filed an objection to the proposed auction, although the attorney for St. Bonaventure Indian Mission and School was apparently considering such a move. Thuma twice issued orders extending the deadline for the Thoreau mission to file an objection, but no objection was ever filed.

Instead, Thuma’s order approving the auction included reference to St. Bonaventure and its property dispute with the Diocese of Gallup. Thuma noted the disputed Thoreau property is not currently listed on the auction list, but added the diocese had reserved the right to add more property for auction.

“The Debtors dispute that St. Bonaventure has any interest in the Disputed Property,” Thuma’s order stated. “The Debtors and St. Bonaventure wish to reserve all their rights and arguments with respect to the interests they assert in the Disputed Property.”

In his order, Thuma prohibits the Gallup Diocese from adding any of the disputed property to the auction list absent further order of the court, but he said the diocese may seek to do so after providing at least seven days’ notice to St. Bonaventure.

In addition, Thuma’s order included an attached exhibit that featured a list of the disputed property in Thoreau that included St. Bonaventure’s use of the property. This was an apparent nod to St. Bonaventure’s recent complaints.

When the Diocese of Gallup filed for bankruptcy, Bishop James S. Wall and his bankruptcy attorneys listed more than a dozen properties in Thoreau as being real property owned by the diocese. However, they neglected to note that most of the Thoreau property had been used by St. Bonaventure for decades.

In a recent media interview, St. Bonaventure executive director Chris Halter cried foul and complained that Wall and his attorneys had noted the use of other property by church entities such as Catholic Charities but excluded any mention of St. Bonaventure.

Now with Thuma’s order, the disputed Thoreau property’s use is finally listed as St. Bonaventure Indian School, a school parking lot, teacher housing, mobile home parks, thrift store, transportation barn/garage, volunteer/low income housing and vacant lots.