A basket-shaped office building, a landmark in central Ohio, is set to enter foreclosure and become the property of Licking County, according to a Bloomberg report. The unique structure served as home to the Longaberger Company, a direct sales business best known for its high end baskets. Completed in 1997, the 180,000-square-foot basket cost $32 million to build. That was pocket change for a company that once boasted sales of $1 billion. But Longaberger’s popularity, and sales, diminished, and in 2015, it was acquired by JRJR Networks, a Dallas-based holding company. According to Licking County Treasurer Olivia Parkinson, the county hasn’t received a property tax payment in more than two years and the amount owed is in excess of $700,000, far less than its value. The building is currently on the market for $5 million, or about $28 a square foot.
“The property has been referred to the Licking County Prosecutor’s office, and title work has been obtained,. I believe the complaint for foreclosure will be filed with the Common Pleas court in the very near future.”
Licking County Prosecutor Carolyn Carnes told Bloomberg her office is still waiting for the title update necessary to draft the complaint. She estimated it would be filed within “the next few weeks.”
The complaint is the first of several steps toward a foreclosure auction, though the process can take more than six months. JRJR Networks declined to comment on the foreclosure. The company is currently in a lawsuit with the former owner of the Longaberger Co., Tamala L. Longaberger, and her revocable trust. In a case filed last year in Dallas district court, JRJR alleged Longaberger Company’s tax liability was not disclosed during the sales process. In an effort to avoid foreclosing on the property, Parkinson’s office sent multiple notices to JRJR Networks, she said. She also attended several meetings late last year with a representative of JRJR Networks as well as local community leaders.
“Much of the discussion at these meetings revolved around explaining the property taxes, the GAP agreement with the city of Newark, and discussion about JRJR’s intentions for the property.”
However, communications have broken down. Patterson said she has not heard from the company in several months. The legal entanglements are likely to slow the foreclosure of the property. In the meantime, the building continues to sit on the market. The price remains the same, but there has been little interest. Daniel McGookey, a mortgage and foreclosure attorney based in Ohio, noted while there is interest in turning the basket into a community center or local historical museum owned by the county, local government has made it clear that it does not want to hold on to the property for long.
“The county is not in the business of owning real estate. The county is in the business of collecting taxes.”
