Town update: bankruptcy trustee selected highest bidder for 231 Turnpike Road; settlement hearing set for Dec. 17

Town staff briefed the Select Board Tuesday on the status of 231 Turnpike Road (the former Regal Cinema), reiterating that the property was foreclosed by Land Court in January 2022 and that earlier RFP activity did not produce an executed sale.

Staff said a U.S. bankruptcy trustee marketed the property in 2025. Offers ranged from about $3.5 million to $5,111,111.11; the trustee selected the highest bidder — identified in the meeting as Bakas Sanwasi / Sri Aksha Purushottam (a Swaminarayan organization) — for $5,111,111.11 to develop a house of worship. As part of the reported settlement agreement, the buyer committed to sell its existing Westborough property to a taxable entity or enter a payment-in-lieu-of-taxes agreement if not sold within 12 months of closing. The town will be reimbursed for outstanding taxes, fees and interest and active litigation between the parties will be resolved if the bankruptcy court approves the settlement.

Town staff emphasized the trustee and bankruptcy court — not the town — are directing the sale process; the town’s role is to review settlement terms as affected party and protect unpaid tax interests. The bankruptcy court is scheduled to hear the proposed settlement on Dec. 17, 2025.

What happens next: the town and trustee will review offers and the settlement will be presented to the bankruptcy court for approval; town staff directed residents with questions to contact the Select Board office.