By Craig Lincoln, Duluth News-Tribune, Minn.
Knight Ridder/Tribune Business News
Apr. 17--The lodge at Giants Ridge has cleared one of the last hurdles
to new ownership, leaving it potentially financially solvent and the IRRRB
out $3.2 million.
The St. Louis County Board voted Tuesday to transfer a liquor license
from the lodge's old owners to Hotel Capital Partners XXIV, based in Minnetonka,
as a legal battle over unpaid bills comes to an end.
| Hotel Capital Partners didn't return phone calls Tuesday for comment
on their plans.
The board decision is one of the last obstacles to turn the lodge's
operations over to Hotel Capital Partners XXIV, said David Twa, St. Louis
County administrator.
The Iron Range Resources and Rehabilitation Board had given $3.2 million
in subsidies to the lodge in return for a 72 percent ownership stake.
Private investors paid for the rest of the $10.5 million project.
The legal problems started in August 2001 when the lodge missed four
monthly debt payments of $60,000. A Minneapolis bank that loaned it money
sued to foreclose.
A variety of other lawsuits also were filed, including one between different
classes of shareholders.
When the dust settled, there wasn't enough money for the IRRRB.
"The IRRRB has lost its ownership in the hotel," said Mike Gentile,
director of development at Giants Ridge. |
|
Hotel Capital Management Changes Name, Poised for Growth
November 1, 2000 - MINNETONKA, MN - Hotel Capital Management, Inc.,
has recently undergone a name change which reflects its expanding focus.
Renamed Sundance Lodging, Inc., this successful and experienced owner/operator
of twenty-one hotels throughout the U.S. is actively seeking third-party
management opportunities of limited service hotels throughout the U.S.
Sundance boasts a talented senior management staff with many years of
experience in the profitable management of previously underperforming lodging
properties. Sundance Lodging's team provides total management oversight,
including operational training, daily financial monitoring, and a hands-on
approach to all aspects of hotel operation. Says president Roger Hoy, "As
an owner of lodging properties ourselves, we understand the benefits and
burdens of ownership. We 'think' like you do and have a 'bottom-line'-oriented
approach to creating value." |
|
The lodge, at Giants Ridge Golf and Ski Resort, was built in 1999. It
has 93 rooms, serves golfers and skiers, and is used as a conference center
for the resort, located near Biwabik.
The IRRRB operates the ski area and 18-hole golf course there. Its mission
is to use money from taconite production taxes to diversify the Iron Range
economy.
Hotel Partners is part of Sundance Lodging of Minnetonka. The company
offers hospitality management services including budgeting, marketing,
management and capital improvement services.
It manages properties in nine states, including a Super 8 in Roseville
and a Holiday Inn Express in St. Paul.
-----To see more of the Duluth News-Tribune, or to subscribe to the
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(c) 2002, Duluth News-Tribune, Minn. Distributed by Knight Ridder/Tribune
Business News. CD, SXC,
Also see: The $10.4 million
The Lodge at Giants Ridge Golf and Ski Resort near Biwabik, Minn, Placed
Into Receivership / June 2001 |
