Bank faces backlash over Galisteo Basin foreclosure lawsuit
LANB: Group ‘failed to deliver,’ preserve hasn’t made loan payment since 2015
Los Alamos National Bank says it is “disappointed and discouraged” that after a decade of working with a local nonprofit to protect a culturally sensitive and scenic expanse of land south of Santa Fe, it is facing a surge of criticism on social media for filing a foreclosure suit on an unpaid debt.
The leader of the nonprofit Commonweal Conservancy, which controls the 9,500-acre Galisteo Basin Preserve near Lamy, says the organization wasn’t behind the pushback — and didn’t even know about it — but recently has received pledges of support from people who want to aid in efforts to pay off the debt if Commonweal can come to an agreement with the bank.
The foreclosure lawsuit, filed early last year, says Commonweal owes $5.4 million in overdue loan payments on the property, which has nearly 30 miles of hiking paths, stunning views, an array of wildlife and the scattered remnants of the ancient Puebloans who lived there.
The financing plan called for the sale of 275 home sites throughout the preserve as a way to pay off the mortgage. So far, however, only 48 sites have been sold.
Bank CEO John Gulas declined to comment about the litigation for a story The New Mexican published last month. Late last week, however, a spokeswoman issued a statement defending the bank’s decision to file the lawsuit, saying it hasn’t received a payment on the mortgage in three years.
“Regrettably, Commonweal failed to deliver on its promise,” says the statement from spokeswoman Jillian Bartley. “As a business, it was unable to meet its responsibility to repay the money borrowed.
“LANB responded by working with Commonweal to extend the due date and lower the interest rate of the loans 50 different times over the course of a decade,” the statement continues. “Despite this, LANB has not received a payment since 2015. … It was only with reluctance, and out of a duty to its shareholders and other bank customers who would otherwise bear the cost, that LANB moved to foreclose.”
The statement also says it was “unfortunate that Commonweal chose to develop and promote public access trails on property that it was in the end unable to afford.”
The statement was in response to social media “communications,” Bartley said in an email, “including an initiative to sign a petition.”
Commonweal President Ted Harrison told he was baffled by the bank’s comment suggesting the nonprofit had jumped the gun by developing trails on the preserve before ensuring it could pay off the property loan. The trail work “was part of the master plan,” he said, adding the bank’s CEO had approved it.
He wasn’t aware of the social media reaction or a petition drive, Harrison said, and if such an initiative has been launched, Commonweal didn’t have a hand in it.
“We would never incite that kind of action,” he said. “We are trying to work with the bank in a straightforward manner.”
The preserve has many fans on social media, with hikers and bikers posting photos of their excursions on the trails. And, indeed, many have posted concerns about the pending foreclosure.
“Losing the Galisteo Basin Preserve to a developer, a la Eldorado, would be a travesty,” one man posted on Facebook last month.
“Where are those billionaires when you need them?” a woman said in another Facebook post. “This sacred place is priceless. It would be nothing for a billionaire to invest 5 or 6 million in this cause, and yet, where the hell are they? Bill and Melinda Gates? Jeff Bezos? Hey, Mark Zuckerberg ???? ”
A Twitter post urges people to donate to Commonweal.
One post recommends that preserve supporters contact the bank with their concerns.
Since last month, Harrison said, Commonweal has received about $2,000 in donations — some driven by news of the foreclosure and others given as recurring contributions.
He also has had conversations with people offering financial and professional services support, contingent on a deal with the bank, he said, and he hopes to keep working toward a resolution before a foreclosure is finalized, possibly as soon as August.
“I have been gratified for the public’s support for the preserve,” Harrison said. “I am grateful for the pledges. … We are hopeful that we will reach an agreement in the weeks ahead.”