Scott Smith’s multimillion-dollar foreclosures, settled class action lawsuits, unpaid tax liens
2 multimillion-dollar foreclosures, 2 settled class action lawsuits, $78,000 in unpaid tax liens
PHOENIX (August 4) – Former Mesa Mayor Scott Smith wants to make business records an issue in the Arizona governor’s race, but refuses to address questions about his business background. Today, The S Files looks into his record as a homebuilder, including two multimillion-dollar foreclosures and two settled class action lawsuits.
“Scott Smith and his campaign keep underscoring that he ‘pays his debts’ and ‘keeps his promises,’ but, with two multimillion-dollar foreclosures, two settled class action lawsuits and $78,000 in outstanding tax liens, his record shows that couldn’t be further from the truth,” said Melissa DeLaney, spokesperson for the Ducey campaign. “If his plan to “Build a Better Arizona” is anything like his background as a homebuilder, it’s bound to be equally as defective. Arizona voters deserve better.”
SOLCITO LANE INVESTORS LLC
In January 2010, a $4.2 million note was called by a bank with regards to the development of a property by Solcito Lane Investors LLC. Scott Smith is co-owner of Solcito Lane Investors and he personally guaranteed the loan. The property sold at auction in April 2010 for $3.5 million – resulting in a $700,000 loss to the lender.
GW INVESTORS I, LLC
In May 2009, a $5.54 million note was called by a bank with regards to the development of properties by GW Investors I, LLC. Scott Smith again personally guaranteed the loan. The property sold at auction for $2.5 million, resulting in a $3 million loss to the lender.
2 CLASS ACTION LAWSUIT SETTLEMENTS
Scott Smith’s homebuilding company, Great Western Homes, settled two class action lawsuits with residents of Stonegate Estates, located in Mesa. Both cases were eventually settled but, curiously, no details on the settlements are available.
The plaintiffs claimed that Great Western Homes’ poor building standards led to:
• Defective architectural building resulting in water intrusion through several sources, including:
o Defectively constructed stucco exterior
o Roofs with defective installation
o Windows with defective installation
o Defectively planned, designed and constructed grading and drainage systems, and block wall failure
• Defective architectural elements resulting in water intrusion and damage
• Defective grading and draining systems resulting in cracking, deterioration and weakening of building components.