Citing an unpaid 2016 tax bill, the county of Napa is suing the owner of the Napa Crossing South shopping center.
According to a complaint filed on Dec. 20, the owners and partners of Napa Crossing South, including manager Kent Hallen, failed to pay a transfer tax of $38,280 when the mall changed ownership in November 2016.
Napa Crossing South, home to anchor tenants Marshalls, HomeGoods and Michaels, is located at 300 to 312 Soscol Ave. in Napa.
In 2016, six different entities were involved in a sale of the center.
Hallen was the manager of each entity. Hallen is also the president and CEO of Pacific Properties Group of Chico, the company that developed the center.
Hallen could not be immediately reached for a comment.
However, on the deed of sale, Hallen indicated that no transfer tax was due.
After a review of the sale, the county recorder’s office disagreed, the complaint stated.
According to John Tuteur, assessor-recorder-county clerk, transfer tax of $38,280 was due.
That indicates an estimated sale price for the center of $42 million.
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Starting in December 2016, the County began trying to collect the tax due.
“When there was no response, the matter was turned over to Central Collections” in the Treasurer-Tax Collector Department, said Tuteur.
Collection attempts continued in 2018. No payments were received, the complaint stated.
A final demand for payment was made in July 2019. That letter “also received no response,” wrote Tuteur.
“The next step is to file this complaint in Superior Court to collect the debt,” wrote Tuteur.
Napa County Counsel Jeffrey Brax filed the complaint.
The Napa Crossing South center has faced other recent challenges. This past September, the mall entered into foreclosure when it defaulted on a $37.3 million loan.
That default was resolved in December. The mall tenants were not part of the foreclosure.
Pacific Properties Group also developed Napa Crossing North on Trancas Street. That mall includes tenants such as Chipotle, Ulta Beauty and Panera Bread.