Three months after opening, iFly in West El Paso is now facing foreclosure but that doesn’t mean business is closing for good.
“They’re open for business. They have their sales volume, they’re doing what they need to do in order to remain open,” Jessica Herrera, Director of the city’s Economic Development said.
iFly is on the verge of foreclosure. According to El Paso Inc., one of its owners called for payment of $10.5 million from the company’s entity: Flyzone LLC.
Last June, the City of El Paso approved an incentive agreement with iFly providing $162,863 in sales tax rebates and building fees over a three year period. In return, it was expected to generate a $12 million investment in El Paso.
“They’ve paid all those permitting fees but before we provide any dollars, checks, or any payments… Whether it’s on a sales tax or permitting fees that they paid, we have to make sure that we verify those numbers and metrics have been met,” Herrera explained.
The metrics Herrera mentioned means the company has to invest a certain amount of money and obtain a certificate of occupancy first.
Since that documentation has not yet been provided – Herrera said no tax dollars have been used or wasted, “We have not yet provided any incentives. Regardless of what the situation may be that the company is facing, we’re still obligated to make sure that they abide by the contract and we’re obligated to go by the compliance process with them as well.”
KTSM reached out to the attorney handling the case however he decided to not comment. According to court documents, the company is set to be auctioned off in a foreclosure sale July 2nd.