Vectra Bankmoves in onHotel Aspen
Vectra Bank has undertaken foreclosing proceedings on a large number of units at the Hotel Aspen due to over $3 million of outstanding debt, according to a notice of public trustee’s sale.
The notice, delivered to The Aspen Times on Tuesday for publication, claims that the borrower, Aspen Hotel Associates LLC, a Michigan company, initially secured a loan for $3,200,000 for the units at the hotel, located at 110 W. Main St.
Vectra Bank maintains that Aspen Hotel Associates were late with their monthly loan payments 35 times during a 35-month period.
Because of the late payments and large outstanding balance on the loan, the bank has opted to auction off the units and their furnishings. The auction is scheduled for June 16 at 10 a.m. at the south door of the Pitkin County courthouse.
“They’re going after a bucket of steam,” said a hotel employee who asked not to be identified. He predicted the foreclosure would not stand up in court.
The Hotel Aspen has 45 hotel units in all; like the Aspen Square Hotel, it is operated as a condominium hotel, with private ownership of each room.
The legal notice claims that as of April 12, 2004, Aspen Hotel Associates LLC owed $3,084,031.58.
The foreclosure follows a lawsuit filed by the bank last March regarding the hotel’s alleged numerous defaults on two loans worth more than $3 million.
According to the lawsuit filed in Pitkin County District Court, Vectra Bank purchased the Aspen Hotel Associates loan consisting of a $3.2 million deed of trust for 35 Hotel Aspen units in late 2000. The bank claims the hotel began to default on the loan beginning in January 2001.
Vectra Bank is requesting a judge appoint a receiver to take control of the Aspen Hotel Associates property – 35 hotel units and two employee units. The bank also filed a motion for the receiver to be appointed ex parte, which means without the hotel owners receiving prior notice.
Matt Ferguson, an attorney who represents Vectra Bank with Aspen-based law firm Garfield & Hecht could not be reached for comment.
Naomi Havlen’s e-mail address is firstname.lastname@example.org