The Signature Center, 4 E. Third St., Jamestown, is pictured on Tuesday. M&T Bank is asking state Supreme Court Justice Grace Hanlon to appoint a receiver for the property. P-J photo by John Whittaker

M&T Bank wants to appoint a receiver for the Signature Center at 4 E. Third St., Jamestown, while the bank pursues foreclosure actions against GPatti Development LLC.

The bank filed a foreclosure complaint Friday in state Supreme Court in Mayville. In addition to GPatti Development LLC and George Patti III, the lawsuit names the state Department of Taxation and Finance, County IDA, state Housing Trust Fund Corporation and the Jamestown Renaissance Corporation. The local and state agencies are listed as defendants because each has mechanics’ liens on the property.

Proof of service hasn’t yet been filed on Patti or the other defendants, according to the state Supreme Court’s e-filing system.

Bank officials allege the bank is owed $1,209,115.72 on the mortgage. The original principal loaned by the bank was $1.56 million loaned on Aug. 1, 2016. The property has been listed on commercial real estate brokerage sites as available for $1.4 million as of early January.

“Pursuant to Section 19 of the Mortgage and Section 254(10) of the New York Real Property Law, plaintiff is entitled to the appointment of a receiver in this action without notice to any defendants,” attorney James Thoman of Hodgson Russ LLP wrote in his court filing.

The Signature Center houses Digitell Inc., the Chautauqua Workforce Investment Board and a small M&T Bank office. Digitell was acquired by Conexiant in 2022 The conversion of the property from a large bank branch into the Signature Center cost $3.5 million in public and private funding.

M&T officials said part of the financing for the project was an assignment of rents that were supposed to make sure the loan to M&T Bank was paid. Kenneth W. Paulin, a senior vice president for M&T, wrote in an affidavit in support of the appointment of a receiver, that bank officials are concerned that since August 2023, when the loan matured, rents of more than $245,000 have been collected with $29,237.61 paid to M&T Bank. Bank officials want a receiver put in place to collect rent and then make independent decisions on how best to protect creditors.

“The borrower continues to use M&T’s cash collateral to the detriment of the mortgage holder,” Paulin wrote. “The borrower has failed to provide proof of payment of school taxes for 2024-25. The principal of the borrower has been withdrawing substantial sums from the borrower’s operating account and depositing them in his personal account. The borrower’s continued control over the premises and rental income harms M&T’s interest in the mortgaged property.”

It’s the second time Patti has faced foreclosure actions in state Supreme Court regarding signature downtown projects. The first foreclosure was eventually settled when Patti sold the former Jamestown Brewing Company to the owned of Wicked Warren’s, with the proceeds of the sale used to satisfy the foreclosure proceeding.