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Venice Inn to be auctioned again

December 13, 1999|By DAN KULIN /Staff Writer

The Venice Inn is headed to the auction block again.

A 99-year lease on the hotel, motel and restaurant complex at the corner of Cleveland Avenue and Dual Highway in Hagerstown is scheduled to be auctioned off Thursday.

The auction is to begin at 2 p.m. at the Venice Inn at 431 Dual Highway.

According to a public announcement of the auction, the lease was created in April 1998 and has an initial seven-year term with the option to extend the lease 13 times for additional periods of seven years each. The rent due under the terms of the lease is $300,000 per year for the first five years, and increasing by 10 percent every five years.

The lease obligates the tenant to pay all taxes, insurance, utilities and maintenance and repairs on the property.

The leased property includes the five-story hotel, two-story restaurant, banquet and liquor store building, two- and three-story motel, swimming pool, one-story warehouse, one-story fast-food restaurant building, and parking lot.

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The auction is the result of a foreclosure on a loan, which listed the lease as collateral, according to court records.

Edward Button, a Hagerstown attorney assigned by the courts to oversee the property, said the auction should not immediately affect day-to-day business operations at the Venice.

Button said Monday that any sale probably would take months to finalize.

The Venice Inn was offered for auction on Sept. 15, but no acceptable bids were submitted and Cleveland-based Metropolitan Bank and Trust Co., which foreclosed on the lease, entered the high bid.

Again, the bank is not required to accept any offer for the lease, Button said.

According to the public announcement, which was most recently published in The Herald-Mail newspapers on Friday, a deposit by a certified bank or cashier's check for $300,000 will be required from the purchaser at the time of the sale, if an offer is accepted.

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