L.M. Sandler & Sons Inc. and its business interests owe more than half a million dollars in back taxes and late fees to Hampton Roads communities.
The Beach-based development company missed the June payment deadline on several of its properties, in most cases for the first time. The family-owned company, run by brothers Steve and Art Sandler, owes Virginia Beach, Suffolk, Hampton and Portsmouth real-estate taxes totaling $558,000.
L.M. Sandler, which bills itself as the largest privately owned developers of master planned communities in the country, has been scaling back or postponing some of its high-profile projects along the East Coast. In a soft housing market with banks tightening their lending practices, the company is showing signs of financial strain.
In Virginia Beach, companies controlled by the Sandlers did not pay the second installation of the 2008 taxes on Indigo Dunes off Shore Drive; the Brown Farm, near City Hall; the Spence Farm, at the intersection of Independence Boulevard and Princess Anne Road; and property next to U.S. 264, where L.M. Sandler is building the Cornerstone community. The taxes were due June 5.
Steve Sandler also owes $4,130 in late penalties for paying the taxes on his home earlier this month.
In total, the taxes and fees owed to Virginia Beach add up to nearly $416,810.
Calls to L.M. Sandler officials were not returned Friday.
Virginia Beach Treasurer John Atkinson said he is not concerned and that the city will eventually get paid, with interest.
Virginia Beach charges a 10 percent late fee and tacks on an additional 9.8 percent annually, Atkinson said.
"Everybody has a right to be delinquent," Atkinson said. "They're going to pay for the privilege."
Developers were frequently delinquent on their taxes 30 years ago, when the city charged far less in late penalties. At that time, it was cheaper for developers to essentially borrow from the city as opposed to borrowing from the bank to pay the taxes, Atkinson said.
Now, most pay on time, he said.
"Obviously, (the Sandlers) are not paying not because they don't want to pay," Atkinson said. "They're not paying because they have a shortage of money. They're making as good of business decisions as they can make."
According to city records, L.M. Sandler has paid all real-estate taxes on its Ashville Park and Brenneman Farm developments.
"We'll be taken care of in time," Atkinson said.
In Suffolk, L.M. Sandler owes $65,000 on a planned 400-acre development called River Club.
Treasurer Ron Williams called the delinquency "the largest by far" still owed to the city from tax bills due June 5.
Williams said his compliance division noticed the unpaid bill after the due date and contacted L.M. Sandler officials to work on payment. The company has done a significant amount of work in Suffolk, and this is the first time it has been delinquent on taxes in any major way, Williams said.
"They've done very well in the city," he said.
Several years ago L.M. Sandler donated 5 acres for a new North Suffolk Library, which now sits near two of the company's developments.
L.M. Sandler is cooperating with the city, but the parties have not arranged a payment date, Williams said.
City records show the company owes another $30,000 on other properties, but much of that balance is expected to be taken off the books because of changes in assessment data, Williams said.
Interim Assessor Sid Daughtrey said some of the properties had been listed as having more acreage than they actually did.
"We're going to do everything we can to work with them through it," Williams said. "The city's financial health is not adversely affected by this."
The company also owes $46,474 to the city of Hampton for property it owns next to the Coliseum. The Sandler-owned Portsmouth Venture One owes $88.75 in Portsmouth, said Jimmy Williams, the city's treasurer.
Portsmouth Venture One is developing the New Port community on 208 acres.
The company had paid the rest of its taxes by June 30, Williams said.
"It's not a concern," he said.
If the Sandlers are having difficulty paying their taxes, it may be a good time for the brothers to talk to Virginia Beach officials about selling the Indigo Dunes property for park space or reducing their plan to build 1,063 homes, said Todd Solomon, president of the Shore Drive Community Coalition.
The coalition has been opposed to Indigo Dunes for its potential environmental and traffic impact.
"They can stop the bleeding in certain areas," Solomon said.
Deirdre Fernandes, (757) 222-5121, deirdre.fernandes@pilotonline.com
Dave Forster, (757) 222-5563, dave.forster@pilotonline.com
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WELL SAID
Keep looking, indeed.
agree, VP keep looking
Keep looking at this whole situation, Sandler Center pledge payment, taxes due and the "no big deal" treasurer actions.
VP Keep looking
Pilot keep looking and you will find one reason (aside from the economy) why the Sandler properties are not selling that well. Look for 25 years to 75 years communication agreements that gives compensation to Sandler affiliates. The economy ahd high HOA assesments make more dificult to sell this properties and on top of that those contracts are against VA Code
We all need to be here!
Oh, pls don't discourage each other from subscribing to the paper. If they fold, then we don't have this forum to exchange views. Rather I think we could all work on politely disagreeing rather than making those extreme sorts of statements to each other that border on knee jerk reactions! S'okay? Cheers, MGM (the Pilot is not perfect, but neither are we, right?)
And yet VBVA
You still compliment the paper by reading it and commenting here. Yes, it must be a TERRIBLE newspaper alright . . .
Every person has their own definition of what is 'news' and what isn't. What is 'bias' and what isn't. But if you're going to say that something is terrible and rotten and yet still read/watch it and comment on it, you only make yourself look foolish. Making such comments about separate articles is one thing, but to condemn the entire newspaper - that's when you cross over to putting egg on your face.
THE PEOPLE NEED TO KNOW
Praise to the Virginia Pilot for continuing this story. Those who are shilling for Sandler by protesting this story don't realize that the ire of the citizens of Virginia Beach is directed just as much at their unconcerned, do-nothing treasurer as it is Sandler.
RESIGN NOW, MR. ATKINSON (Does that concern you?)
The VP has become nothing
The VP has become nothing better than a weak version of a gossip magazine. The only reason people may want them to "keep on the story" is so they can pay attention to someone else's life and not think about how boring their own lives may be. There must be something actually newsworthy that they can start writing about...
TO THE UNCONCERNED TREASURER
MR. ATKINSON, RESIGN NOW.
A BIG THANK YOU PILOT
Keep on the story as this affect the city and people who invest in such developments. I'm not happy the are "delinquent on payments" but I really don't like how this company take advantage of people (Remington Park)
VB Treasurer says late tax payments are a right
This VB treasurer is an embarrassment. It is time for him to go. You always have to look for the angles. Wonder why VB City Council recently authorized the City Treasurer to reduce or eliminate delinquent tax penalties. Wonder why the City Treasurer is an elected official and raises big sums of money for re-election and then spreads that money around to others running for election. Wonder who contributes to the VB Treasurer's campaign fund. Just wondering.
on the money
markk! Well said.
Major players are ALWAYS news
What influencial people do in an area is ALWAYS news. It is news especially when they owe the city they live in half a million dollars in taxes. What makes it more newsworthy is when the city treasurer thinks it is 'no big deal' that they do owe that much in back taxes. I'm glad the VP is reporting on it and I hope they continue to do so.
As for those of you who don't like what is written in the VP: no one is forcing you to buy it or read it. If you think it is that bad a paper: DON'T READ IT! It's that simple. I don't doubt you will be able to find something else in life to complain about.
BIG DIFFERENCE BETWEEN WHAT IS OWED AND WHAT IS PAID
The penalties and interest do not generate more money for the city until they are paid. Right now, not even the amount due is paid, let alone interest. They are not doing the city any favors.
The reason this is news is stated clearly in the article - no one else in the city owes more than Sandler. If they wanted to be high profile by putting their name on the performing arts center, the should have considered first whether they are willing or able to pay the price of admission.
give me some news
not across the back yard fence gossip.
the last 3
What "wisdom" there is in the last 3 comments!! hehehe
I agree with Robertg
I'm not sure this is even newsworthy. What point is the VP trying to make? I'm sure that they are not the only business/developer who don't pay their taxes on time, so why attack just them? They should be reporting on everyone who is late. Mr. Atkinson meant what he said...they will pay, but they will also be paying the late fees. I'm sure the CoVB would like everyone to be delinquent, at least by a month, so they can collect the late fees. The Sandlers' late fees are going to be a nice chunk of change for VB. So does anyone really care?
Fine with me
Let him be delequent, that puts more money into the tax base once he pays late fees and interest. That is unless the developer controlled council and city mangler decide to let him off the hook. Wonder if that discussion is being held behind closed council doors.
Hopefully the pilot will somehow stumble across some real news, and be able to get facts straight before putting it to print. US 264, geez....even the most inept report should be able to get that right!
Any real news is certainly not found in this fishwrapper.....
"That's nice...any real news out there? Or they just going to keep repeating Sandler stories for weeks?"
The Virginian Pilot is certainly not a "news" paper.... more like a politically slanted rag, only worthy of wrapping dead fish in.....
Maybe when the Batten's sell, there will be hope of the removal of bias, but not likely.
What's next..... a column by the esteemed "judge" of character these days, the Pilot's own Kerry Doughtery?
PUHLEEZE!!
I read the Pilot to keep up with the obits mostly, everything else is just rubbish......
am i
Suppose to feel sorry for Mr. "Everybody has a right to be delinquent,"? Man if that answer dosen’t sound like a certain political party answer.
Dear Beach....
....city council, please feel free to raise my taxes so as I can help bail our the Sadlers...and all your other pet projects that cost us money! I just want to be able to sleep at night!...ps...please name something after me... The robertw16922 Convention Centre looks nice too me!!
Keeping It Straight
Whatever is owed in the name of the individual, is their personal responsibility, we all know what that means. When homes, cars, boats, planes, lines of credit, and business assets are established through trusts and incorporations, then it is a non-personal responsibility to pay them. This means corporate officers, lawyers, and trustees are dealing with it, with advise and consent of the primary stakeholders. I'm shocked by these recent articles surrounding the Sandler name. I thought the Batten's, Cox's, and Sandler's were all good friends by the way The Virginian-Pilot read regarding their mutual interests a year ago, what in the world has happened since then?
Sandler
What do you have against sandler? is it beacause their last name is sandler
That's nice
That's nice...any real news out there? Or they just going to keep repeating Sandler stories for weeks?
what amazes me...
What amazes me is how much the city is in the tank for real estate funds that it named it's prized cultural performing arts center after these realtors. They say it was named in honor of their parents...yeah, okay! I guess it's better than naming it after a corrupt politician.
Trimming taxes at Stihl? What about The Sandlers?
Here's a simple plan to help. It seems that when Stihl went to the VB Mayor/ Council they took a re-vote to drop the tax raise planned for Stihl. Simply economics is that they could take a vote to waive the taxes for the Sandlers.
It's nice to see that the good old boy network is alive and well
In Virginia Beach. To expect anything else would be what, stupid on my part. To expect more and what is right, well, I'm at a loss for words, because I don't think that will ever happen in Virginia Beach. That and I'm completely dumbfounded that Atkinson would even say what he said said, much less out loud where everyone could hear him.
The news these last few days is amazing - Virginia Beach with its developers behind in taxes, Norfolk with its developers without contruction loans in place and refusing to pay contractors, Chesapeake allowing devleopers to create a superfund toxic waste site in a neighborhood.
Wow makes me wanna run right out and hug a developer. Not!
TREASURER "NOT CONCERNED" IS AN OUTRAGE
"They're making as good of business decisions as they can make." Right now, it is a good business decision for Sandler not to pay because the worse case scenario, as long as the Treasurer is "not concerned", is that he pays interest. If the Treasurer does his job and seizes the land for resale, it might no longer be a good business decision for Sandler and he will find the money pretty darn quick.
It must be nice . . .
To be able to owe over half a million dollars in taxes and have the tax collector say it 'okay.' Sheesh . . . if any of us were in the same position, we would be in jail for tax evasion and held there until we paid it.
I agree with what was said earlier: they should have to forfeit the property of Indigo Dunes to the city in exchange for playing off what they owe in taxes. Either that or else put the Sandlers in prison until they do pay it. They can just sell another one of their jets for that matter . . .
NOT FIT TO BE DOG CATCHER, LET ALONE TREASURER
'right to be delinquent'
Does everyone have the right to have Sandler Center named after them? Of course, not. Oh, you incompetent fools running the city! The Sandler Center is now going to become an eyesore to the citizens of Virginia Beach -- a symbol to honor our most prolific tax delinquent!
And Mr. Atkinson says more or less "its not because they don't want to pay, they just don't have the money"
Try that with the IRS. Something stinks here. Mr. Atkinson is a little too protective of Sandler's delinquecy.
When You Spread the Butter to Thin, You Tear the Bread
Nuff Said,
Maybe the Sandlers would donate the Indigo Loons property to the CoVB for a tax break and nature preserve.