CONNEAUT — Bankruptcy that has enveloped the historic Cleveland Hotel could keep the building in a legal limbo for several months, according to its local overseer.
The failing finances of the hotel’s developer could mean no sale of the property for the balance of the year, said real estate agent Richard Gleason, the building’s court-appointed receiver.
The personal bankruptcy of developer Don Longwell has already delayed a sheriff’s sale of the three-story hotel set for earlier this year. A new asset management company has been appointed to keep tabs on the situation, but even so a rescheduled sale won’t happen in September or October as anticipated.
“It’s still in foreclosure,” he said. “It’s going to take a long time. It’s in the distant future.”
The gloomy forecast is the latest bump in the road for the building, which underwent a $2.3 million transformation from century-old hotel to condominiums.
The project began amid high hopes in 2005 when Lighthouse Historical Development Inc., acquired the dilapidated hotel at downtown State Street and Cleveland Court. Restoration was delayed a few years while the developer arranged tax credits available to owners of historic properties.
Work began in earnest in late 2007 and continued into 2008 — about the same time questions began to surface regarding the tax abatement City Council approved for the project. State officials inferred the city may not have followed proper procedure in authorizing the abatement.
The building’s first tenant, Snap Fitness, arrived in September 2007. Tours of the condo units fashioned from old hotel rooms followed in February 2008.
Sales of the units fell flat, however, and no other business followed Snap Fitness into other retails spots in the building. A couple leasing a condo filed a lawsuit late last year alleging the owners had reneged on the contract and were ignoring routine maintenance.
In March, local health officials discovered mold in one of the units. The situation is being monitored, Cady Hutchinson, Conneaut’s environmental health inspector, said Wednesday.
Early this year the corporation filed bankruptcy and the old hotel was slated for sheriff’s sale. That plan was derailed when Longwell announced intentions to file personal bankruptcy.
“That threw a money wrench into the plans,” Gleason said.
When the legal woes are cleared, Gleason expects the building will draw a fair share of suitors.
“People have already made inquires,” he said. “Some have even made offers.”
Local News
Cleveland Hotel fate tied up in bankruptcy
No sale is anticipated for many months
- Local News
-
-
Six ready to interview for Buckeye’s super job
The Buckeye Local Board of Education will conduct interviews with six superintendent hopefuls next week, said Board President Jacqueline Hillyer.
-
Shooting suspect to be tried as adult
A 17-year-old will be tried as an adult in the school shooting deaths of three students, a juvenile court judge ruled Thursday after hearing a sheriff’s deputy describe how the teen wore a T-shirt with the word “Killer” and admitted shooting people.
-
Ohio EPA takes AIM at site of hazardous wastes
Ohio Environmental Protection Agency staff members returned this week to the site of the now-bankrupt Ashtabula Iron and Metal on West 30th Street to take samples of the unknown liquids and analyze hazardous wastes, asbestos and other potential health and environmental concerns.
-
Commissioners look at selling nursing beds
Commissioners have retained the services of a law firm that specializes in the sale of excess nursing home beds as the board looks at ways to raise additional revenues.
-
Conneaut looks at demolition funds
The city is making preparations to secure its share of nearly $692,000 in demolition funds expected to be Ashtabula County’s portion of a multi-billion dollar settlement with national mortgage lenders.
-
Volunteers get more help than needed at rescue spot
Despite their good intentions, Edward and Mary proved more hindrance than help to the Conneaut KeyBank employees lending a helping hand Thursday to a farm animal rescue operation in Kingsville Township.
-
220 graduate at Lakeside
Thursday night was a time of pomp, circumstance and smiles as 220 seniors graduated from Lakeside High School.
-
Lost money?
There is no map, and “X” may not mark the spot, but hundreds of Ashtabula County residents may have unclaimed cash ready and waiting for them through the Ohio Department of Commerce.
-
Lane to be tried as adult in Chardon High shooting
A 17-year-old boy will be tried as an adult in the school shooting deaths of three students, a juvenile court judge ruled Thursday.
-
Happy Hearts School holds commencement for its Class of 2012
As commencement exercises go in Ashtabula County, the one at Happy Hearts School was small, with just five students.
- More Local News Headlines
-
Six ready to interview for Buckeye’s super job
