Business center owned by vice mayor files for bankruptcy protection

Maricopa Manor Business Center, owned by Vice Mayor Ed Farrell and his mother Alma, is seeking Chapter 11 protection.

The bankruptcy case was filed Jan. 31.

Great Western Bank, which has a branch office in the center on the northwest corner of Garvey Road and John Wayne Parkway, is the first lien holder on the property, while the Dunn Family Revocable Living Trust holds a second lien on the property. Pinal County also is listed as a creditor.

As part of the process, a creditors meeting is scheduled for March 12. Under Chapter 11 protection, a company is freed from the threat of creditors’ lawsuits while it reorganizes. Any reorganization plan must be accepted by a majority of its creditors.

The property faced previous financial difficulties in 2011 when the center defaulted on three loans with Great Western Bank. At the time, the property was scheduled to go to public auction but, after several months of talks, the issue was resolved and loan modifications made, said Phoenix attorney Donald W. Powell, who represented the center then, as he does now.

Powell did not return a call to his office Tuesday afternoon.

The approximately 19,500-square-foot office complex houses The Smoker’s Edge, Bright Minds Preschool, Puppy Love Pet Stylist, Maricopa Domestic Water Improvement District, ACTS Christian Church, Desert Sun Performing Arts, Maricopa Monitor, Electrical District No. 3 and HomeSmart.

According to the verified complaint in 2011, Maricopa Manor Business Center LLC defaulted on loans totaling approximately $3.9 million by failing to make payments, failing to pay real estate taxes and assessment, and failing to pay a $15,000 insurance premium.

That summer the city signed a $104,000 five-year lease agreement with the center for 990 square feet of office space to relocate Maricopa Domestic Water Improvement District’s office.

Calls to Farrell and his mother were not returned Tuesday afternoon and it is not known if they intend to sell the property, restructure it, bring on new investors or pay off their creditors.