WEST CARTHAGE Pleasant Night Inn is going on the auction block, just two and a half years after it opened.
Hotel manager Erica A. Leonard said the property at 30 N. Broad St. is in foreclosure. Community Bank is auctioning the property at 10 a.m. Tuesday in the front vestibule of the Jefferson County Court complex, 163 Arsenal St., Watertown.
Mrs. Leonard said she was told by one interested buyer that if he purchased the business, its eight employees all would be replaced.
I would love to buy it but do not have enough assets to get a loan from the bank, said Mrs. Leonard, who has managed the business for about the past year. Id like to find private backers to keep it local or find a local buyer. She said the bank reportedly is seeking $2 million for the property.
Jeffrey S. Shambo of Brantingham opened the 40-room hotel with fitness room in May 2010. Mr. Shambo could not be reached for comment.
According to Mrs. Leonard, the hotel has operated under the direction of the Longley Jones Management Corp. of Syracuse for the past month.
Funding to build the $3.4 million hotel came in part through a 10-year participation loan, according to Community Development Coordinator John F. McHugh. Loans totaling $525,000 administered through the Development Authority of the North Country were obtained through the North Country Alliance in the amount of $125,000 at 4 percent interest, the Jefferson County Industrial Development Authority for $250,000 at 4 percent and the Economic Development Corporation of Carthage, $150,000 at a 5 percent fixed rate.
Michelle L. Capone, director of regional development for DANC, which administered the loan funding, said it is proceeding with the collection process. She said DANC has taken a settlement on hotel furniture and fixtures that were used as collateral on the loan in order for the hotel to be sold.
We knew when we make this type of loan that we were taking a risk, Ms. Capone said. But at the end of the day, on the good side, the community has a nice facility a great asset.