The Newton City Finance Committee was told Monday that a bankruptcy filing by Turtle Lane LLC has put the long-troubled Turtle Lane site in Auburndale on hold and stopped a previously scheduled foreclosure sale.

City Solicitor Ali Giuliani said the company filed for bankruptcy after a bank initiated foreclosure proceedings and that, "by law, bankruptcy stays all creditor collection efforts." The city has entered the bankruptcy proceeding as a creditor to try to collect fines owed and has retained outside counsel with bankruptcy expertise to represent the city's interests and help secure a sale to a qualified buyer if the court approves one.

Giuliani told the committee the parties and the bankruptcy court are working toward a court-approved plan to market and sell the property; there is no new foreclosure sale date and the city remains involved in discussions about a sale. "We're just waiting for the court," she said, adding staff are in "constant contact" with the parties.

Chair Gentile told colleagues the scheduled auction was postponed when the bankruptcy was filed and emphasized that members should tell constituents the sale is "on hold right now." Committee members asked whether the bank continued to pay property taxes; Giuliani said the bank has likely continued payments but she was not certain and recommended checking with the treasurer.

After the update and a brief exchange about tax priority and ownership questions, Councilor Malachy moved to take no action on docket item 157-24. The committee approved the motion by voice vote; Chair Gentile reported the motion passed unanimously by the eight members present.

The committee's action leaves the city's primary legal and collection strategy in the hands of its outside counsel and the bankruptcy court. City staff said they will continue to monitor the case and report developments to the council.