The Landmark as seen from the deck of Bang! restaurant on June 14.
For three years, Tyvek has been flapping in the breeze at the planned 101-room luxury lodging. Now that could change, as three bidders were approved for a Monday, June 18 auction.
If developer Lee Danielson had any hope of making the winning bid for the shell of the Landmark Hotel he helped erect with partner Halsey Minor, they were dashed today. A document filed in the US Bankruptcy Court for Western District of Virginia, ahead of the auction scheduled auction for 11am on Monday, June 18, shows that three bids were accepted, and Danielson's wasn't one of them.
According to counsel for the debtor, Minor Family Hotels LLC, Danielson's bid did not meet the terms of the auction because he did not submit "written evidence of a commitment for financing." Instead, three bids by large corporations, each of which already owns multiple hotels, were accepted.
"I am very, very happy there are three qualified bidders each of whom has the demonstrated interest in the property, and the wherewithal to close if they win the auction," says Bill Shmidheiser, a lawyer who represents a subcontractor holding a lien.
Danielson, however, says the court's decision was made with "erroneous information," and that he and his investment partner plan on appealing their dismissal from the auction. And if that can't be done in time, he says, they'll show up on Monday with proof of financing.
"We will give the higher bid," he says. "I'm sure they won't turn us away."
One of the bidders is TRT Holdings, Inc., which owns both the Omni Hotel and Gold's Gym chains, along with an Atlanta-based real estate corporation known as Deerfield Square Associates II, and another Georgia hotel development corporation called J.B. McKibbon, Ltd. Deerfield's bid was the highest, at $3.5 million, so the bidding on Monday will start at that amount.
As previously reported, UVA-based hotel expert, George Overstreet, has run the numbers and concluded that a buyer who keeps the total cost of purchase and completion under $20 million can profit at that site.
"I expect a good auction on Monday," says Shmidheiser.