LAWRENCE — The burnt-out Merrimac Paper Co. is the poster child for the $25 million tax debt the city is owed.
The property, located at 9 South Canal St., is city's top tax scofflaw, having racked up $2.67 million in unpaid taxes, water and sewer bills since 2002.
The second worst offender is American Recycling of Massachusetts, which owes $435,238 for property at 207 Marston St., the former John C. Tombarello & Sons Salvage Co. site.
And in third place is the Wood Mill LLC, the unfinished Monarch on the Merrimack housing complex at 250 Merrimack St., which has $145,882 in unpaid tax bills, according to city records.
As the city looks to get back on solid financial footing, a push is on to have these back taxes paid in order to put some much needed cash in Lawrence's coffers.
Nearly $1 million in back taxes was collected recently after demand notices were sent to residents and businesses. Also, this summer, a legal intern working with the city placed liens on 350 delinquent properties, said Bob Nunes, the city's financial overseer.
"That's the priority," said Nunes, appointed in April after the Legislature allowed to Lawrence to borrow up to $35 million to fix his budget. "We are aggressively pursuing delinquent monies owed to the city... We need to go and recoup as much as we can."
Because it has the biggest bill, the spotlight is on Merrimac Paper Co.
Officials said interest alone on the paper company's giant bill is $900,000 — money that could be used immediately to alleviate the stress of this year's budget.
Some 84 city workers, including 47 police officers and firefighters, were laid off to balance the $72 million municipal budget. The layoffs led to an outcry from residents and officials over safety in the city.
Officials said talks are underway with Andover's Stephen Stapinski, manager of the Julian-Edward Realty LLC, which owns the paper company, and his attorney, Michael Morris of Andover.
But it's unclear how successful those meetings will be.
"No payment plan has been established yet," said Leonard Degnan, chief of staff for Mayor William Lantigua. "It's an ongoing process."
In an interview last week, Stapinski denied that he owns the paper company and said the tax bills on the property were never sent to him.
"I want to set the record straight," he said. "I am not personally the owner."
Earlier this year, however, Stapinski worked out a payment plan with the Fire Department over $150,000 in fire watch detail money racked up at the Merrimac Paper Co. building since December 2005.
The city wasn't going to let Stapinski knock down the former Cedar Crest restaurant on Broadway to make way for a new Burger King until the situation was resolved. But Stapinski agreed to pay $1,000 per month until the fire detail bill is paid off, and a demolition permit for Cedar Crest was issued.
When told that Stapinski denies owning the Merrimac Paper Co., Degnan pointed to the fire watch detail payment plan arranged earlier this year. Why would someone establish a payment plan on a building they don't own, he asked.
"And why is he working on a tax payment plan if he doesn't own it?" Degnan added.
Building Commissioner Peter Blanchette echoed similar sentiments.
"Every issue we have had on that property, he has answered to," he said.
Neither Morris nor King Weinstein, the other manager listed for Julian-Edward Realty LLC, returned calls seeking comment for this story. Julian-Edward Realty LLC was organized on Oct. 18, 2005, according to records kept with the secretary of state's office.
On Aug. 9, after two fires at the property the day before, Blanchette issued an order naming "Julian-Edward Realty Trust/Steven Stapinski" to demolish the buildings at 9 South Canal St.
A demolition date remains unclear. Acting fire Chief Brian Murphy has said the Merrimac Paper Co. buildings must come down due to their dilapidated and unsafe condition.
"That's also an immediate concern... That it's demolished according to all the guidelines," said Degnan, noting that the property abuts the Merrimack River canal.
Several years ago, Stapinski unveiled plans to build a $15 million combined commercial and 134-unit apartment complex at the paper company site. He wanted to raze the complex then, but couldn't get the city to issue the proper permits.
Formerly a specialty paper mill, Merrimac Paper Mill Co. closed in June 2005 after filing for bankruptcy two years earlier. The company manufactured paper products ranging from colored office folders to specialty pages used in books.
Top 40 tax scofflaws
1. Merrimac Paper Co., 9 South Canal St., $2,136,203.
2. American Recycling of Mass., (former Tombarello site), 207 Marston St., $435,238
3. Wood Mill LLC, (Monarch on the Merrimack), 250 Merrimack St., $145,882
4. Bay State on the Common II LLC, (Bay State Building), 11-21 Lawrence St., $163,469
5. Gato Realty Trust, 71 Glenn St., $124, 631
6. Aquamac Corp., 19 South Canal St., $100,483
7. Fulton Street Corp., rear 617 Common St., 266 Lowell St., 264 Lowell St., $95,817
8. Eileen and Daniel Donovan, 37 Merrimack St., $67,281
9. Pacific Mills Acquisition LLC, 300 Canal St., $52,239
10. Parkview Commons, 226-232 Common St., $45,445
11. Jerome Jozak, 184 Jackson St., 14-16 Park St., $44,752
12. RKM Trust, Joanne Hilton Trust, 75 Holly St., $36,833
13. A&K Realty Trust, 103-107 Essex St., $35,315
14. Bidco Corp., 389-397 Methuen St., $31,251
15. Willwerth Wade, 73-75 Cross St., 80-86 Haverhill St., 111-113 Jackson St., 115-117 Jackson St., 119-121 Jackson St., $31,169
16. Frank Muraco, Patricia Muraco, 315 East Haverhill St., $29,803
17. David Landy, 540-542 Broadway, $29,333
18. Margaret O'Brien, 265-267 Essex St., $28,031
19. Modern Urban Builders, 226-232 Common St., $27,438
20. South Broadway Realty Trust, 225 Salem St., 99-107 South Broadway, $26,881
21. St. Augusta Landing, 337, 343, 345, 347, 349, 351, 353 Water St., $26,500
22. Stephen Lagana, 143-145 Essex St., $22,032
23. H&L Enterprises LLC, 31 Water St., $21,108
24. Roger Bijjani, 17-19 Tyler St., $20,982
25. Munroe Paper Co., 7 S. Canal St., $20,579
26. Crosby Realty Trust, 216 Lawrence St., $19,606
27. MJR Realty Trust, 37 Newbury St., $19,465
28. Ping Zuo, 44 Union St., $18,399
29. Donis Antonio, 137-139 Water St., $18,364
30. Cornelius Smith, 192-194 Water St., $18,202
31. 187-189 Essex St. Realty Trust, Albano Arnold, 187-189 Essex St., $18,076
32. Shewan LLC, 17-19 Tyler St., $17,457
33. Gangi Realty Corp. 273 Prospect St., 48-50 Franklin St., 631 Essex St., 623 Essex St., 621 Essex St., $17,402
34. F&B Wholesales Inc., 555-557 Common St., $17,328
35. 100 Oxford St., Realty Trust, 100 Oxford St., $17,255
36. Lawrence Rental Inc., 28-30 Morton St., $16,684
37. Fulton Street Corp., 262 Lowell St., $16,665
38. Mark Ann Lesko, 2-4 Thorndike St., $16,306
39. Amalia Maria Martinez, 309-317 Broadway, $15,805
40. Joseph Nicosia, 13 Lenox Circle, $15,544
