Do I hear $3.6M? Landmark Hotel bidders chosen w/o Lee
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The Landmark as seen from the deck of Bang! restaurant on June 14.hawes spencer -
For three years, Tyvek has been flapping in the breeze at the planned 101-room luxury lodging. Now that could change, as three bidders were approved for a Monday, June 18 auction.hawes spencer
If developer Lee Danielson had any hope of making the winning bid for the shell of the Landmark Hotel he helped erect with partner Halsey Minor, they were dashed today. A document filed in the US Bankruptcy Court for Western District of Virginia, ahead of the auction scheduled auction for 11am on Monday, June 18, shows that three bids were accepted, and Danielson's wasn't one of them.
According to counsel for the debtor, Minor Family Hotels LLC, Danielson's bid did not meet the terms of the auction because he did not submit "written evidence of a commitment for financing." Instead, three bids by large corporations, each of which already owns multiple hotels, were accepted.
"I am very, very happy there are three qualified bidders each of whom has the demonstrated interest in the property, and the wherewithal to close if they win the auction," says Bill Shmidheiser, a lawyer who represents a subcontractor holding a lien.
Danielson, however, says the court's decision was made with "erroneous information," and that he and his investment partner plan on appealing their dismissal from the auction. And if that can't be done in time, he says, they'll show up on Monday with proof of financing.
"We will give the higher bid," he says. "I'm sure they won't turn us away."
One of the bidders is TRT Holdings, Inc., which owns both the Omni Hotel and Gold's Gym chains, along with an Atlanta-based real estate corporation known as Deerfield Square Associates II, and another Georgia hotel development corporation called J.B. McKibbon, Ltd. Deerfield's bid was the highest, at $3.5 million, so the bidding on Monday will start at that amount.
As previously reported, UVA-based hotel expert, George Overstreet, has run the numbers and concluded that a buyer who keeps the total cost of purchase and completion under $20 million can profit at that site.
"I expect a good auction on Monday," says Shmidheiser.
10 comments
I would like to clarify the statement in the Hook. We may try to bid but under terms of the auction we may not be able to. The $200K was placed in the account as required and the partner is not one who divulges their finances. We are trying to work that out at this time but no "promises". I am very proud of what has been accomplished in Charlottesville and hope to see nothing but good and improving product for years to come.
If Mr. Danielson's "partner is not one who divulges their finances", how can he expect to be taken seriously? On what basis would the court determine whether or not he's capable of coming up with the funds? I'm trying to imagine somebody applying for a mortgage and, when asked details about assets and income, responding with "I'm not prepared to divulge that information".
if the bid requirements were known in advance, and Im sure they were, how could you get to today with an issue left open. seems like you or someone on your team dropped the ball
One assumes here that one who doesn't want to divulge his finances is someone who can write the check for cash, but is uninterested in having the bankruptcy court having his/her balance sheet known. Not likely to be a "mortgage" on this sort of deal. My attitude would be: I've bid X amount of money and will pay the cash; you all don't need to know otherwise. I can either pay or not....
Does it have a parking garage? Or will it just congest the overly congested?
Really?, have you ever been to C'ville? If so, you are a decidedly unobservant fellow.
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I was surprised that Mr Justice was not on the bidding list. But then again, I guess he made his money by not making dumb decisions.
Danielson was involved from the beginning on this mess and I hope he will not be invovled in the new venture. He did not deliver and had people working for several months without paying them, according to the press.
Looks like Danielson has finally lost his stalled erection this time. They are not going to let him bid with his mysterious financing. He's dreaming.