The City of New Bedford is suing the private owner of the Star Store for more than $500,000 in unpaid taxes through a process that could end with the city seizing ownership of the downtown property if its tax bill remains unpaid.
The Star Store, a historic building that fills nearly a full city block in downtown New Bedford, housed UMass Dartmouth’s College of Visual and Performing Arts for 22 years until the university ended its longstanding lease at the building in September 2023.
A recent investigation by Massachusetts’ Inspector General blamed the university, the state’s property management agency and the state senator who orchestrated the campus’ creation in the late 1990s for failing to plan for the building’s long-term stewardship.
The Star Store’s private owner, Paul Downey, collected more than $60 million in public funds for what amounted to a 22-year tenancy, and walked away with permanent ownership of a building that was initially meant to pass into state ownership for the nominal fee of $1 in 2021.
The campus’ closure shocked students, residents and politicians in New Bedford, including Mayor Jon Mitchell, who made a belated offer to take ownership of the building and lease it back to UMass Dartmouth. The university declined the offer.
Mayor Mitchell’s administration has since ended a longstanding special tax deal for the Star Store, hiking Downey’s annual property tax bill from $50,000 to more than $500,000 — an amount he has refused to pay so far.
Last week, the City of New Bedford filed a tax lien complaint in the Massachusetts Land Court against Downey’s holding company, Star Store Holdings LLC, to collect $525,028 in unpaid taxes and interest.
This story was reported by The Public’s Radio. You can read the entire story here.
