WESTBOROUGH – It has been nearly five years since the town obtained the Regal Cinemas, two years since a prospective buyer was chosen, and two years since a pair of lawsuits were filed to halt the purchase.
Background
Following an unexpected closure of the theater in 2017, the town searched for the property’s owners. The property went before Town Meeting, which approved an appraisal.
Town Manager Kristi Williams said several years ago the town considered other options before deciding in 2019 to begin a process known as tax title taking.
A court then formalized the property’s foreclosure.
“So, now the town is the owner of the property,” said Williams.
According to Finance Director Jonathan Steinberg, the unpaid back taxes and interest on the property total $733,078, as of 2024.
In May 2022, the town approved a request for proposals, which drew more than three dozen requests.
Three formal bids were brought before the Select Board – Ferris Development Group LLC proposed a Beehive location; a rebuilt and upgraded theater from LAX Media MA LLC; and 108 condo units to be developed by Pulte Homes of New England LLC.
In November 2022, the Select Board chose LAX Media LLC the winning bidder. Soon after, Ferris Development Group filed suit against the town and LAX Media, claiming its bid was objectively superior.
The other lawsuit was filed in Worcester Land Court in January 2023 by Westborough SPE LLC, which claimed to have purchased the company from the original owner, F. Jan Blaustein. Westborough SPE LLC is asking for a motion to vacate the foreclosure granted in 2019.
The documents were filed one day before the one-year deadline of the final foreclosure decree.
Both cases remain in court, and the Select Board continues to discuss both lawsuits in executive session.
A status conference for the case involving Ferris and LAX Media has been scheduled for Jan. 7 in Worcester Superior Court.