Troubled Menomonee Falls Radisson Hotel Goes Into Receivership

Village asks court to take action because of concerns over pending lawsuits against hotel's owners.

A Waukesha County Circuit Court judge has appointed a receiver to operate the in Menomonee Falls at the request of village officials, who are concerned that lawsuits pending against the hotel's owners could affect the operation of the establishment.

Officials are worried about the litigation because Menomonee Falls loaned owner Lodging Investors of Menomonee Falls $17 million to build the hotel. The owners missed the first payment of $700,000 on that loan, which was due this month, according to the Journal Sentinel's Tom Daykin.

The receiver will collect revenues and profits from the hotel and "maintain the operations of the hotel in a status-quo circumstance for the benefit of the village and the hotel," according to a statement issued Tuesday by the village.

The action comes as the owners of the hotel, which opened this June, face a civil fraud lawsuit stemming from "private financing for the hotel's development," Daykin reported on Sunday.

"The Village Board of Trustees is certainly concerned about recent events involving the Menomonee Falls Radisson Hotel and the outside litigation that is pending against current owners," the village's statement said. "However, the Village Board of Trustees believes that the appointment of a receiver is a prudent measure to take to assure the community and its citizens that the hotel’s operations will be legally protected during this period of outside litigation."

In the statement, village officials noted that the hotel's owners and the Radisson Hotels International Inc. supported the appointment of a receiver.

"The village appreciates the confidence expressed by Radisson in this hotel and its ownership during this process," the statement said. "Radisson’s consent
should be a clear sign to everyone that this hotel is a viable entity."

Craig November 22, 2011 at 11:52 PM
Not bad at all...5 months and already missed a payment. Makes me wonder why the Radisson Hotel didn't obtain the financing, makes me wonder why the owners were unable to obtain financing. Makes me wonder why the village saw fit to be the donor er, I mean lender.
Richard November 23, 2011 at 02:32 PM
What a mess now!
Richard November 23, 2011 at 02:37 PM
It seems obvious that we need people on the village board who understand the rudiments of financial underwriting. Wonder who did the appraisal for this property.
Richard November 23, 2011 at 03:00 PM
Amen, that is apparent from the article, except that real thinkers won't accept that response.
Ted Klumb November 23, 2011 at 06:28 PM
Smoking Joe. Don't call me. I never "pushed" this. Yes, I continue to support aggressive development in that area, but it wasn't my responsibility to review the financials, perform the due diligence, run background checks on the borrowers, or wrote protections in the deal for the Village. Hold those who did accountable, as I plan to do, not someone who expressed an opinion when the deal was already done.
Craig November 23, 2011 at 06:41 PM
Ted: Those of us who aren't smoking something do not blame you at all. I agreed with the need to develop the blighted area as much as you did. I questioned the financials when the Chain did not put up the cash and the owner was unable to obtain financing. It didn't seem like rocket science to me at the time, if conventional financing is not working- then it must be a poor risk. Joe: Put the bong down and hang up the phone. Stop in at Village Hall after a snack.
Lori November 25, 2011 at 04:16 PM
Remember the employees have nothing to do with the village or owners, They are just trying to make a living and make the hotel a success. They need your support so they can do that. Please support the hotel,restaurant & bar then everone gets paid back!!!!!!!!!!!!!!
Ted Klumb November 25, 2011 at 05:13 PM
Lori is 100% correct. Why do a certain few in the Village wish for the failure of attempts to make our community better? I see "geico" is back as Smoking Joe. Let me tell you about geico. This anonymous coward has sent me over 30 personal messages. At least 20 of them were the same message over and over. I ignored them all. Coincidentally, I was receiving a number of blocked calls, and hang ups to my family home at the same time these messages were coming. I consulted with a friend in Law Enforcement to see what could be done. We are now getting more of those calls. That outcome is pending. Meanwhile my kids won't answer the phone. The other media outlet found all of his comments way out of line and banned geico from all JSOnline content. This geico seems to have an obsession with me and about a previous comment about law enforcement and a libelous remark from an anonymous MaryR. All I will say to that is the wheels of Justice move slow but it does not mean they have stopped. Smoking Joe, the wheels of Justice are heading for you. I know who you are. More charges come your way and you won't be able to cop pleas or move out of town. Lori is right, please support what is good for our community, jobs and revenue.
Notty November 30, 2011 at 02:29 AM
I agree that we should all hope that the hotel does well, and we should help support it if we can. What I can not understand however, is when and why did the Village become a lending institution? I bet $17,000,000 could have made far greater improvements had it been spread out along the entire Main St. corridor, rather than just on a hotel location that had never had great success over the years. When they want to spend that kind of money on the schools, we vote on it through a referendum. Why not in this case?
W . Benz June 23, 2012 at 03:07 AM
Lori hope the employees are getting paid .


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