Radisson Foreclosure Suit Settlement Could Materialize

Attorneys overseeing the village’s Radisson Hotel foreclosure suit have made progress with the parties involved.

Attorney’s representing hotel subcontractors, Menomonee Falls, and members of the ownership group held a telephone conference call Monday at the Waukesha County Circuit Court.

Attorneys received a judge’s approval to adjourn its status conference to a later date. Randall Crocker, the attorney appointed by the village, requested 45 more days to negotiate with parties before holding a status conference. The judge agreed to move the date to Nov. 19.

Crocker said a meeting with all parties was held Aug. 27 at the Von Briesen & Roper  law offices. He said progress was made toward reaching a possible resolution; however, details at this point are not being released. Attorney Seth Dizard – the village’s court-ordered receiver – also reported the hotel’s finances had stabilized.

The village in June filed a complaint in the Waukesha County Circuit Court seeking foreclosure of the village’s mortgage on the hotel. The action was taken by the village to offer a clear title to any purchaser and a subsequent sale of the property in order to recover a principal amount of  $14.4 million in advanced by the village as a loan to move the project forward.

Over the past two years Lodging Investors – the ownership group of the hotel - has been the center of controversy since owners failed to make payments on a $17.65 million loan issued by the village to kicks start the development.

Lodging Investors failed to make two $700,000 payments on the loan, and things went further south from there. Contractors who built the hotel have also been putting pressure on village leaders to explain why they haven’t been paid for the work they completed on the hotel. For example, Barry Bloom, a manager with A1 Services, said the company is owed $70,000.