Yarrow auction delayed
The auction of The Yarrow in a trustee’s sale has been delayed until Jan. 27, but there remains the possibility that the hotel will not be put on the block that day, either.
The auction had been scheduled on Wednesday. That date, though, was canceled just days after a legal complaint was filed in Third District Court. According to a court clerk, Yarrow Corp. has asked a judge for a temporary restraining order and a preliminary injunction. The legal filing was not immediately available. The case has been assigned to Judge Robert Hilder, and a hearing is scheduled Jan. 21.
David Hart, who leads the Buffalo, N.Y., firm that owns The Yarrow, said his side wants the judge to agree to delay the trustee’s sale as the court case proceeds. The case, Hart said, will clarify whether the lender should pursue a legal process or a foreclosure.
Hart said his side continues to talk to the lender in an effort to stave off a trustee’s sale. It was not clear whether the discussions would result in an agreement before the Jan. 21 court date or the rescheduled trustee’s sale on Jan. 27.
The case is centered on the repayment of a $9,950,000 promissory note issued by a lender known as Heller Financial. Inc. in 1999. The loan was due to be paid off on July 1. Hart’s firm, though, was unable to repay the loan, the bulk of which was due on July 1. According to Hart, $8.2 million was due at maturity in July.
Hart has said his firm had difficulties as the recession set in and was unable to make the repayment on schedule. He has said the Park City market has suffered more than much of the rest of the nation during the recession.
If the trustee’s sale occurs on Jan. 27, it would be the second such sale of a high-profile property in Park City in a month. The Claim Jumper on Main Street was sold at auction in a trustee’s sale in late December, fetching $5 million. A subsidiary of the bank that was the lender on the Claim Jumper entered the $5 million bid, the only one that was made during the auction.
Hart’s firm bought The Yarrow with the hopes of tearing the building down and then putting up a new lodging property. The Yarrow dates to the 1970s and it stands as a workhorse hotel amid the more exclusive lodges that have been put up in the last decade or so.
The Summit County Assessor’s Office values The Yarrow and the land it sits on at just less than $11.1 million.
The 181-room hotel sits at the busy Park Avenue-Kearns Boulevard intersection. Sundance Film Festival organizers are preparing to move into a portion of The Yarrow, which has been a festival venue for years. A 295-seat screening room will operate inside The Yarrow during Sundance.
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