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Supervisors press city agencies after El Rey Theater foreclosure; lien, judgment and auction raise questions
Summary
Committee hearing revealed the city held a lien and a $246,682.97 judgment against Voice of the Pentecost but learned of a mortgage auction that extinguished the lien only after reporters published the sale; TIDA, the City Attorney and OEWD outlined past negotiations, legal limits and ongoing efforts to pursue landmarking and community engagement.
The Government and Oversight Committee convened a hearing to examine how the El Rey Theater on Ocean Avenue — long owned by Voice of the Pentecost — was foreclosed and auctioned despite a city lien, raising community alarm and questions about notice and preservation.
Bob Beck of the Treasure Island Development Authority said TIDA held a lien related to a 2005 lease and nonpayment of rent. He said the city pursued an unlawful detainer and negotiated a stipulated payment that the tenant failed to make; the Superior Court later entered a judgment for $246,682.97 for accrued rent, interest and penalties. Beck said he and TIDA were surprised to learn from reporters that a private lender had auctioned the Ocean Avenue property in February, extinguishing the lien secured by that property.
Deputy City Attorney John Gibner (name spelled Givner/Gibner in parts of the transcript), Matthew Rothschild of the City Attorney’s Claims Division, and Virginia Ho told supervisors the city retains an enforceable judgment but that the lien against the Ocean Avenue property was extinguished by the lender’s sale. Rothschild said the judgment can be renewed under applicable procedure and may show up on credit reports; the City Attorney’s Office said it will research what local or state options exist to improve notice or prevent surprises in future lender foreclosures, while noting potential restrictions under state law.
Joaquin Torres of the Office of Economic and Workforce Development said OEWD and partners attempted to contact the new owner and the church after learning of the transfer, offered assistance for renovation or redevelopment, and halted improperly permitted work through the Department of Building Inspection. OEWD said it is supporting a community-led historic landmarking effort to help protect the building and guide any future permitting decisions.
Neighbors and preservation advocates told the committee they were alarmed the sale was not flagged to city agencies. Dan Weaver of the Ocean Avenue Association and Alex Mullaney of Save El Rey said the building is a neighborhood anchor and urged landmarking or city/community acquisition. One commenter called it “sold for the cost of a house,” referring to the roughly $1,060,000 auction price reported at the hearing.
Supervisor Yee asked the City Attorney’s Office to explore legal and policy changes to improve monitoring and notice around foreclosures; the committee filed the item on a motion by Supervisor Scott Wiener, which passed by no objection. The city said it remains open to dialogue with Voice of the Pentecost about satisfying the outstanding judgment but currently has identified no attachable assets.
