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Landmark Hotel to be Put on the Auction Block

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Charlottesville's Landmark Hotel on the downtown mall will be sold. On Monday, Federal Bankruptcy Court Judge William Anderson ordered that The Landmark Hotel be put on the auction block.

At this point, all signs point to a June 18, 2012 auction date. Prospective bidders will have to go through a vetting process which includes securing a $200,000 deposit.

Rich Maxwell, attorney for Minor Family Hotels, said, "The attorneys are going to get together and try to iron out all of the issues dealing with the sale."

Proceeds of the sale will to go pay off debt claims against hotel financier Halsey Minor and his limited liability corporation. Minor owes the general contractor and others about $2.8 million in unpaid bills. He owes the original bank lender $13 million and the City of Charlottesville $135,000 in back taxes.

Steve Test, the general contractor attorney, said, "We want to get to a point where we get our money. We can't get our money until we sell the building."

Bill Schmidheiser, attorney for R.D. Jones & Associates, said, "All buyers are liars until they are buyers so people saying they're interested isn't the same as people writing a check."

Minor's developer, Tim Dixon, will have go up against a handful of other people identified as bidders. The original developer, Lee Danielson, says he has billionaire Alexander Von Furstenberg ready to back him.

Connor Crook, Danielson's attorney, stated, "We're really excited that it's come to this point."

If the lawyers involved in this case cannot come to an agreement on the sale terms and the bankruptcy case is thrown out it will go back to Charlottesville Circuit Court where that judge will attempt to sell the property.

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