June 28–To avoid foreclosure, owners of a prominent South Broadway hotel have filed for bankruptcy as they search for a new buyer or attempt to refinance the mortgage.

The 145-room Wyndham Garden hotel, at 1625 S. Broadway, was purchased by Wayzata-Rochester 16 Hospitality Associates in 2012. The Wayzata-based hotel firm filed for Chapter 11 bankruptcy Monday afternoon.

The bankruptcy filing allowed the hotel to narrowly avoid a mortgage foreclosure sale that was scheduled to be administered by the Olmsted County Sheriff's Department this morning. The sale was requested by mortgage holder Access Point, which says it is owed $6.6 million.

However, nothing is expected to change in the near future, according to a representative of Bay Ridge Properties International. Bay Ridge is a sister firm, though it is a separate entity from Wayzata-Rochester. Both are led by Robert "Tripp" Snyder. Bay Ridge has a number of hotels in Minnesota, North Dakota, Costa Rica and elsewhere.

"We're going to continue to run it and operate it," said Lee Fundanet, an owner and chief operating officer at Bay Ridge. "This gives a chance to re-finance it or sell it and get market value. We have a couple offers coming in."

That means the 35 to 39 employees still have jobs, despite the financial difficulties. The Cowboy Jack's restaurant, a tenant in the hotel, will continue to operate as usual. It's unclear if the hotel will retain its brand. Wyndham Hotels and Resorts declined to comment for this article.

Wayzata-Rochester 16 purchased the hotel for $4.8 million in 2012. It then renovated the property and changed the franchise from America's Best Value to Wyndham Garden. Neither Bay Ridge nor Wayzata-Rochester own any other property in Rochester. Complete Hospitality Management, owned by Fundanet, did manage the downtown Holiday Inn for a while.

Fundanet estimated that his firm invested $6.2 million in the renovation. He added that Wayzata-Rochester 16 recently had the hotel appraised and it came in at $14 million to $16 million.

Olmsted County's total estimated market value for the property for 2016 is $11.7 million.

The bankruptcy filing lists the top 20 creditors. While the filing allows the hotel to avoid mortgage foreclosure, it also makes life more difficult for a number of Rochester business that are owed many thousands of dollars. Those include:

–Superior Cos. of MN, Inc. — $42,088.

–Rochester Public Utilities — $32,350.

–Garbage Man — $9,297.

The top non-local creditors include:

–Wyndham Hotel Group — $408,753.

–Winona Inn LP — $132,930.

–Bay Ridge Properties International — $85,589.

Other Rochester creditors listed in the filing without specifying what they are owed include: Advanced Fire Protection, Bowman's, Bright Eyed Computer, C.O. Brown Agency, Custom Communications, D & R Vending, Grubb Refrigeration & Air, Information Systems, K&S Heating, M& M Construction and Cleaning, Nature's Best, the Rochester Area Chamber of Commerce, Rochester Area Visitor, Rochester Convention and Visitor Bureau, Rochester Drain Rite, Rochester Fire Extinguisher,Rochester Plumbing and Heating, Rochester Youth Hockey Association, Roger's Tree Service, Roto Rooter, Textile Care Services, Thatcher Pools & Spas, WSB & Associates and Yellow Cab of Rochester.

"During the re-finance process, all of those creditors are first in line and there will plenty of profits to do that. We just need to get the re-finance finished or sell the property," said Fundanet.