Saturday, October 28, 2017
Staff report
YOUNGSTOWN
A Connecticut-based financial firm filed a lawsuit seeking foreclosure on the California Palms property in Austintown that is being used as an addiction recovery center for veterans.
California Palms owes Cedar Hill nearly $2.3 million, according to the filing.
The sum originated in a $2 million loan with the California Palms property as collateral, and California Palms failed to make required monthly interest payments in December 2016, the filing said.
The parties reached an agreement, and California Palms again defaulted in March, according to the filing.
California Palms owner Sebastian Rucci acknowledged owing $2 million, but said the building is worth $11.6 million.
He intends to refinance the loan and said the addiction recovery campus is not in jeopardy.
Cedar Hill asked for a summary judgment in the case, and a hearing is scheduled with Magistrate Daniel P. Dascenzo to determine the matter Nov. 27.
Rucci said he is confident he will be able to obtain a new loan and settle the lawsuit before a hearing.
The California Palms recovery center was formerly a hotel.