The Sargent Ranch northwest of San Juan Bautista, where discovery of forged tribal papers killed a major development project, is slated to be sold at a foreclosure auction July 26. The lender seeks to recover $21.6 million.
The sale is scheduled for 1:30 p.m. on the steps of the county government center, where bidders are generally required to present a check for the full amount of the purchase.
There have been more than 3,000 sales there since the real estate market collapsed but none that large. When the former Borland headquarters, with a debt of $38 million was put up for sale, the lender set the minimum bid at $12.2 million and there were no takers.
The lender foreclosing on Sargent Ranch is First Blackhawk Financial Corp. of Danville.
The legal notice indicated buyers would take over the interest of Sargent Ranch LLC but not receive a 100 percent in the land.
Wayne and Marci Pierce of La Jolla, own 85 percent of the 6,500 acre ranch.
The couple used about $35 million from dozens of investors for a development plan, according to the Gilroy Dispatch.
In 2007, a report by the U.S. Department of Interior’s Office of Inspector General confirmed tribal leader Irenne Zwierlein forged and mailed documents to the government.
The ranch owners filed Chapter 11 bankruptcy proceedings to reorganize three years later.
Check back for more details.
