The Marysville City Council voted 3-0 Tuesday to file a lien against the historic State Theater to recoup $47,031.65 in nuisance fines, repair work and administrative labor costs.

Mayor Bill Harris recused himself because of prior consultations with the owners. Councilman Ben Wirtschafter was absent.

Owners George Benny and Eva Hollo of Oakland, who, during previous meetings, accused the city of mail fraud and discrimination "against Hungarians," also were absent.

Prior to the vote, Don Melvin, who said he was a "minor partner" in California Partners LLC., requested an extension be granted because Benny has a "calcified cerebral mass" — the result of a recent head injury.

According to documents from the 9th Circuit Court of Appeals, Benny served 10 years of a 30-year federal prison sentence for mail fraud and racketeering charges that date to the late 1970s. He was paroled in 1993 under conditions that included a moratorium on real estate activities.

Melvin said Hollo, who he described as "a Hungarian nurse," is caring for Benny full time.

The couple "sent me to ask in person that this (matter of the lien) be continued," he said.

City officials, Melvin asserted, did not need to spend $6,300 to repair and paint the theater's marquee — an action the city took in August. California Partners was subsequently billed for the costs.

Had the city been more cooperative, Melvin said, "I would have fixed that marquee a year ago."

Trouble between California Partners and the city dates back to February 2006 when Marysville sent the theater owners a first "Notice to Correct." According to the document, the owners had neglected to submit plans for bringing the property up to municipal code standards in a timely fashion.

An extension was requested and granted.

Necessary improvements included a paint job of the walls, repair of a marquee, roof repairs, and repairs to fire damage in the building's interior, according to the notice.

Several notices and deadline extensions later, the owners began to make repairs. They completed all but the marquee, according to City Services Director Dave Lamon, and paid $3,900 in outstanding penalties.

Things appeared to be on track again.

But in early 2007, Benny and Hollo fell out of compliance, according to city documents.

Requests for improvement schedules went ignored, and penalties began to accrue once again. Benny and Hollo appealed the notices four times unsuccessfully.

At council meetings, they accused council members of discriminating against them because of their ethnicity, and of sending notices to the wrong address — an action which they said constituted mail fraud.

Benny and Hollo also asserted that the FBI was in the process of investigating the city.

Contact Appeal-Democrat reporter Nancy Pasternack at 749-4712 or at npasternack@appeal-democrat.com.