|By Sean Adkins, York Daily Record,
Pa.McClatchy-Tribune Regional News
Oct. 28, 2010--YORK, Pa -- The owners of the Yorktowne Hotel had been attempting to amend the terms of its loan with PNC Bank when they received a surprise.
On Friday, the bank filed a complaint with the York County Court of Common Pleas that York Hotel Group had defaulted on its loan and owes $5.26, which includes the principal, interest, attorneys' fees and late fees.
The bank has scheduled that the historic hotel be sold at sheriff's sale at 2 p.m. Feb. 7.
"The hotel had no idea that the bank was going to take this action and file the complaint," said Frank Fusco, a consultant for the York Hotel Group. "The owners have been trying to resolve this."
Fusco said that the owners of the hotel do not want to lose the property at 48 E. Market St. in York.
Built in 1925, the hotel is a staple of York, listed on the National Register of Historic Places, and at 11 stories high, it's one of the tallest buildings in York.
"The owners are not taking this lightly," Fusco said. "They take the property very seriously. I can't rule anything out, but there is a lot of time between now and February for something to be worked out."
Should the hotel's listing make it to the sheriff's sale without being canceled or postponed, chances are good the PNC will retain ownership of the property.
Held about every six weeks, sheriff's sales make county properties that either fell into foreclosure or have unresolved financial agreements available for public purchase.
The upset price, or the rate that reflects the costs owed to the bank, would be high enough to discourage other bidders, said Craig Reich, president of CR Property Group in Spring Garden Township.
"The bank wants to make sure that they are protected and retain control of property," he said.
While the hotel and PNC continue to negotiate the terms of the loan, the hotel will continue to operate normally, Fusco said.
"The hotel is very valuable to the community," he said. "The Yorktowne will stay open and this will be worked out."
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Copyright (c) 2010, York Daily Record, Pa.
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