Andros Diner Foreclosed; Business' Fate Unknown

The building that housed the locally popular but financially-troubled  at 628 Trapelo Rd. was sold in a foreclosure sale Wednesday, March 9, according to court and legal documents.

While the building is no longer in the hands of the business owners, John and Ourania Annette Manetas, the property sale could assist in bringing the business back to financial solvency. 

Fairview Commercial Lending of Atlanta, which obtained the mortgage from Eastern Bank in December 2007, sold the 6,011 square foot property for $640,000 at yesterday's foreclosure sale "for breach of the conditions of said mortgage," according to public documents. 

The winning bid came from a man and his son from Newton who have some familiarity with the business, according to a source familiar with commercial real estate. 

While the property located at the edge of  is sold, it is unknown whether the business will continue at the present location, move to a new building or simply shut down due to numerous public and private debt accumulated by owners. 

During a meeting with the two weeks ago, as a public notice advertising the foreclosure sale was being circulated, Ourania Manetas with to pay down the then $74,000 in back payments for water, sewer, electricity and taxes the business owed the town by providing the town $250 a week in restitution. 

During the meeting, the Manetas' attorney, Vincent Pepi of Newton, told the Selectmen said the owners were" seeking a partnership with another food-related business" to obtain funding.

When asked by Selectmen Angelo Firenze if the business was for sale at the meeting, Manetas and Pepi both said no.

Those close to the commercial property industry speculated that the building's new owners could be using it as security for a level of private financing that will allow the business to continue. 

Town owed $75,000

As for the town's debt, Carman said that $54,000 of the $75,000 in outstanding payments for utilities and back taxes are protected by a municipal tax lien and is entitled to be paid as part of any settlement under state law.

He said the remaining $21,000 will be rolled into the existing tax lien after the end of the fiscal year on June 30. 

Carman said while the town would be behind the lender and state in order of having their debt paid, Belmont has a powerful weapon in its arsenal: the business permit allowing the restaurant to open its doors.

He said he hopes to hear from the new owners and the Manetas in the next two weeks to discuss paying their obligation to the town.

"If that doesn't happen, I will strongly recommend the Board of Selectmen not to issue a Common Victualler (business) license when it comes back before them on July 1," he said.

"The ball is in their court," said Carman.

The owners also have a nearly $100,000 bill for back state business taxes that resulted in the Commonwealth's Department of Revenue to shut the doors of the business in mid-February. 

The state had closed the family-run diner in July of last year for nonpayment of sales taxes.

Money problems have plagued the business for a number of years: Past mortgage holder Eastern Bank began foreclosure proceedings in March 2008 a few months after the town filed a municipal lien on the property in December 2007 for $13,111.70 in unpaid utility bills. 

Less than two years ago, Fairview began its own foreclosure of the property in July 2009 with a letter to Superior Court.