Winston-Salem’s largest Black-owned downtown
business has been locked out of its building
because of a foreclosure dispute. The business,
located at 6th and Trade streets and Liberty and
6th Streets, known as the Trade Street Galleria
& Liberty Commons buildings, are owned and
operated by Tanya Wiley and her husband Dorrel
Brown. Wiley is a popular Winston-Salem
businesswoman known for her civic involvement
and advocacy of African American and minority
business ownership.
The business, which houses commercial office and
retail space (with 18 tenants), is the largest
Black-owned business in downtown Winston-Salem.
It is also the largest Black-female headed
business in the city. The shutdown came when the
mortgage holder, Mechanics & Farmers bank, began
foreclosure action last year.
The strained relationship between the two Black
firms began when a major tenant in Wiley’s
building moved out. The departure of that
tenant, the Department of Social Services, left
a hole in excess of $14,000 per month that
Wiley-Brown and their team said they were unable
to fill immediately. According to Wiley three
other smaller tenants were forced to move as a
result of budget cuts and financial hardship,
resulting in an additional income loss bringing
the total loss to more than $17,000 per month.
Wiley said this situation put them into a
serious financial bind.
“I went to Mechanics & Farmers with a request to
refinance the loan. They assured me that
something would be worked out and because I sit
on the city board and wanted to support the
bank, I continued to wait, believing what they
told me and this proved to be a major mistake on
my part. I should have taken the deal to some
other bank”, she said.
Unable to repay the mortgage, M & F, the city’s
largest Black-owned financial institution,
started foreclosure action against Wiley Brown &
Associates in February of last year. According
to Wiley Brown’s attorney, prior to obtaining a
court order allowing the lock out of Wiley
Brown, the bank changed the locks to the
building. Last month, the bank formally took
possession of the building, thereby forcing
Wiley and some of her tenants out of the
building.
During the foreclosure proceedings, Wiley said
she secured a commitment from Southern Community
Bank to refinance and pay off the Mechanics &
Farmers delinquent mortgage.
“But they will not take the money. I have a firm
letter of commitment. Another institution is
ready to pay them off, but for whatever reason,
they will not accept the money”, said Wiley.
“There have been several offers on the table,
even before the foreclosure proceedings
occurred, but we continue to remain at an
impasse”, Wiley said.
The controversy between the two Black firms has
caused a firestorm of concern and raised
eyebrows across religious and political lines.
According to Wiley and other city leaders,
Mechanics & Farmers bank officials have been
“totally unreasonable” since the commitment from
Southern Community was put on the table. Wiley
said the latest appraisal of the 42,000 square
foot building is in excess of $2 million
dollars.
“We have a bona fide offer to pay them more than
the balance…in fact we offered them $100,000
more than we owe and they still refuse to accept
the money”, said Wiley.
“I’ve discussed this matter with a number of
community leaders including Mayor Allen Joines
and State Representative Earline Parmon. They
are just as mystified as I am as to why M & F
will not cooperate with a bona fide offer to
completely pay them off and make them whole”.
Wiley said the City of Winston Salem held a
second lien on the property of $94,000.
“The City of Winston Salem has been extremely
supportive of our project and they firmly
believe in our expansion plans”, said Wiley.
A call to Southern Community bank officials
confirmed that they have made a firm commitment
to completely pay off the balance owed to
Mechanics & Farmers bank.
According to bank officials, “Southern Community
has made a commitment to refinance or repurchase
the property”.
Bank officials at the Winston-Salem branch of M
& F were not available at press time. Efforts to
speak to officials at the bank’s corporate
headquarters in Durham were also not successful
at press time.
The continuing impass between the two Black
firms has raised the ire of many of the city’s
most influential religious and political
leaders.
Last year, a delegation from the Winston Salem
Minister’s Conference traveled to Durham to meet
with bank officials in an effort to resolve
matters, but were unsuccessful.
“We have appealed to Mechanics & Farmers bank to
rethink their position regarding this
situation”, said the Rev. Dr. Seth Lartey,
senior pastor of Goler Memorial AME Zion, and
one of the leading supporters of M & F bank.
“Wiley Brown now has the funds to refinance or
repurchase the building. A firm letter of
commitment has been brought to the table from
another financial institution {Southern
Community} yet M & F has refused to deal with
the matter. We are not going to stand by and
watch another Black business go out of
business”, said Lartey, who was the sparkplug
behind a drive that brought, “massive amounts of
new business to the bank”.
When asked about his well known public role as
an advocate for the M & F bank and how it had
resulted in significant deposits and new
business, Lartey expressed his concern and
disappointment about the matter..
“Apparently all the work we have done on behalf
of the bank was not considered; we’ve not been
listened to; however, my hope is that wisdom
will prevail. Now the funds to take care of the
matter are at hand and I would hope this would
merit some consideration”, he said.
“Mrs. Wiley now has what the bank needs, and the
bank has what Mrs. Wiley needs and that is to
get her building back. And we are not going to
relent until she gets it back”, said Lartey.
Virginia Newell, a former 16 year city council
member and one of the leaders who helped
organize and bring M& F bank to the city
expressed surprise and amazement at the bank’s
actions.
“I just don’t understand it. I helped to
organize this bank. I’ve spent a great deal of
time trying to figure out why this has not been
resolved. She has another lender. She has the
money. She’s been downtown for nearly 10 years.
She and her husband have struggled and worked
very hard and we need some Black-owned
businesses downtown. Now, she has found the
money to pay them off, and why they don’t take
the money, well, I just don’t know. This whole
thing just baffles me”, she said.
Newell said she didn’t know the inner workings
of M & F bank but hoped that the matter would
soon be resolved. She said she knew the bank was
not in the real estate business and could not
understand why they would not accept the offer
made by another financial institution. “Looks
like somebody has dropped the ball somewhere. I
just hope M & F will take the money owed to
them, give the young lady her building back and
they can both get on with business”, she said.
The lockout caused serious disruptions for many
of the building’s tenants. Even though Frank
Ancona, pastor of the new Direction Christian
Fellowship had a paid up lease through December,
the lockout forced his church congregation to
move out.
“We had a valid lease; we were never behind in
payments but the bank refused to give us a key.
We had our lawyer talk to their lawyer, but got
nowhere. On December 6th, we were locked out
just like the building owners and other tenants.
Just because one party is involved in an
argument with another party, it should not
involve us. We had nothing to do with the
dispute.”
Ancona said ,“I just don’t understand the logic.
To hold us accountable for something we had
nothing to do with is just reprehensible. It’s
just so unfortunate, but we’ve been blessed to
have found another place to hold our worship
services.
Wiley, who sits on M & F’s local board said the
biggest mistake she made was not taking action
sooner.
“I thought I was doing the right thing by
keeping my mortgage with this bank since they
were working so hard to increase their business
loan portfolio. My intent has always been to
assist with further developing the bank.”
Wiley’s attorney, Robert Lefkowitz says he is
working to have the foreclosure sale overturned.
“The purchase price is grossly inadequate. M&F
purchased or took ownership of the building for
$601,000 dollars when the appraised value is
over $2 million dollars and probably more.
In my 20 years in practice, I have never seen a
time when a bank would not give out payoff
information. Southern Community has been waiting
since July for payoff information”.
While the legal wrangling between the two
Black-owned businesses continues to play out,
Wiley says she has no plans to give up her
efforts to get her building back.
“We have been downtown for close to ten years.
My husband and I will continue to operate our
businesses based on honesty and integrity. What
has happened to us is no different than that
which many other business owners have come up
against. What we needed was an institution that
was willing to stick with us not only during the
good times, but also through the challenging
times”, she said.
“Each business that we have has been built based
on the principle of serving people and we truly
believe that if we do not fight for what is
right, we will have missed the mark and not only
disappointed God, but many other people as
well”, she said. Wiley’s husband, Dorrel Brown
said “This whole situation is unfortunate. All
too often our community is left out of the
process and we face injustices due to a lack of
capital. In this instance that was the case … we
are victims of black on black economic
injustice”, said Brown.
The above article
was taken from Jan 2007 AC Phoenix News.
Winston-Salem Journal front page headline
story in the Jan. 25, 2007 edition:
FORECLOSURE DISPUTE DRAWS IRE OF BLACK LEADERS
(Some say bank's actions on Trade Street
hurt whole community)
Click To
Read
Changing with the times
by: Tammy Bankhead
WCP Communications®
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