Foreclosure process underway for Hrazenek's Arkville junkyard
By Joe Moskowitz
Troubles continue to mount for Fleischmanns resident and auto salvage yard owner William Hrazanek. Leonard Maxim, now of South Carolina, has begun the process to foreclose on the junkyard Hrazanek bought from him and operates on Maxim Lane in Arkville. One source told the News that Hrazanek was served foreclosure papers at about the same time that the State Department of Environmental Conservation (DEC) raided the Arkville yard and two Fleischmanns properties that are owned by Hrazanek.
A second source confirmed that foreclosure proceedings are underway and says it is possible Maxim could regain possession within two or three months.
As reported earlier, Kenneth Pasternak, one of the backers of the proposed Belleayre Resort is attempting to foreclose on the former Bailey Manufacturing Plant on Depot Street in Fleischmanns, another of Hrazanek’s properties that the DEC raided. The DEC still won’t say why the raids were conducted.
In addition, Hrazanek is facing collection efforts from the Catskill Watershed Corporation (CWC). The CWC says it gave him more than $84,000 for post Irene flood repairs, but the work was never done and CWC now wants its money back.
Blames the flood
Hrazanek contends that the flood caused him financial problems and he is waiting for a buyout from the Federal Emergency Management Administration to bail him out.
Meanwhile his plans to move his towing business to Margaretville have come to an end. His VWP Holdings, Inc. was the top bidder at the Delaware County tax auction for the former Ingram Body Shop on Route 30, but the Delaware County Treasurer’s office says there has been a change.
There will be a meeting on August 28 to approve the sale to a new owner and the spokesperson won’t say who it will be sold to, but it will not be sold to Hrazanek or one of his businesses.