First Arena - Foreclosure Proceedings

Foreclosure Proceedings

The official move toward foreclosure against First Arena began after 4:30 p.m. Jan. 17, 2012 the deadline for Elmira Downtown Arena to pay $123,849 in overdue taxes.

Elmira Downtown Arena LLC, which is supposed to pay taxes and utility bills, is owned by Michigan businessman Mostafa Afr, who also owns the Elmira Jackals hockey team, the arena's primary tenant

The owner of First Arena in Elmira plans to apply to repurchase the arena from Chemung County after a judge signs a foreclosure order and a redemption period begins.

This is not the first time that Elmira Downtown Arena has defaulted on its taxes. It entered into an installment agreement to pay taxes on Oct. 31, 2007, and defaulted March 31, 2008. The default was paid off on Jan. 20, 2009, the last day possible. Elmira Downtown Arena entered into another installment agreement on Jan. 14, 2011, and defaulted March 31, 2011.

2/21/2012 After not paying taxes for three years and being hit with a foreclosure order by Chemung County last week, Elmira Downtown Arena LLC owner, Mostafa Afr, has finally written a check to pay off all of the back taxes and fees he was responsible for. Afr owed $136,234.

The arena is owned by Southern Tier Economic Development, STED, but Elmira Downtown Arena LLC is the arena's operator. STED's lawyer, Steven Agan, says Afr's check will be delivered to Chemung County on either Wednesday or Thursday of this week.

If the check had not been written and the debt had not been paid, the county would gain ownership of the arena.

3/2/2012 The check has been delivered to the County, but the County Legislature still must vote to accept the payment. This vote is currently scheduled for March 12, 2012. Meanwhile, the General Manager of the Arena was fired yesterday via an email from Dr. Afr.

3/6/2012 The Chemung County Executive issued a scathing rebuke of the Afr family and recommended that the Legislature hold off their vote until June 30, 2012. During that time, he recommended hiring an outside consultant to conduct an investigation of the Arena's operations and finances.

3/12/2012 The Chemung County Legislature voted unanimously to table the vote until June 30, 2012 and to begin the investigation.

3/22/2012 The operator of First Arena filed two lawsuits. One against two former employees and the other against Chemung County, the County Executive, County Treasurer and Southern Tier Economic Development. "The truth will come out. Fact of the matter is the money was here to pay the taxes. And the fact is Robbie Nichols told the Afrs it was paid," said Jim Parks, Afr's Attorney.

4/17/2012 The two lawsuits were heard in Chemung County Supreme Court. No immediate decision was reached.

4/25/2012 The two lawsuits were dismissed. "The fact that the county has never in the past denied repurchase by a former owner after a tax foreclosure is of no consequence in this matter, since they are undoubtedly afforded the right to accept or reject, by majority vote, a private party repurchase agreement," Judge O'Shea wrote in her decision.

5/30/2012 The County has entered into a Memorandum of Understanding (MOU) with Elmira Downtown Arena (EDA) and Southern Tier Economic Development (STED) to allow EDA to continue operating the First Arena for the 2012-2013 Elmira Jackals hockey season. The Legislature ratified the agreement on July 9, 2012.

7/24/2012 The County announced that First Arena will be sold to local businessman Tom Freeman, thus ending all pending litigation and placing the Arena onto the local tax rolls. Freeman will negotiate with the Afr family to keep the Jackals playing at First Arena.