Spicer Mansion on Elm Street, Mysic, April 3, 2017. (Sean D. Elliott/The Day)
Chelsea Groton Bank appears to win another foreclosure sale pursuit of Spicer Mansions, a boutique Mystic hotel whose fate is tied in a string of lawsuits unfolding in multiple jurisdictions.
In documents filed in New London Superior Court late last week, the bank asked the bank to set a new sale date after the successful bidder failed to close the $3.52 million deal in an initial sale about five months ago. I asked.
Chelsea Groton said after a U.S. Bankruptcy Court judge ruled on August 1 that the hotel owner’s personal bankruptcy would not prevent the foreclosure sale of the new Spicer Mansion from proceeding. I have submitted a request.
Brian Gates, whose hotel is owned by Gates Realty, received a loan from creditors on May 20, one day before the scheduled foreclosure sale of four other properties he owns, including the Stonington residence. I filed for Chapter 11 bankruptcy protection. The auction of these properties, which Gates used to secure Chelsea Groton’s mortgage for Spicer’s mansion, has been stopped.
In a 2019 lawsuit, Chelsea Groton alleged that Gates defaulted on a $1.8 million mortgage loan granted in 2015.
Bankruptcy judge James Tancredi said Gates’ failure to show up for a hearing in bankruptcy court on July 28 “without good and good reason” prompted the bank to pursue another sale of the hotel. He cited a number of failures in ruling that he could. Deal with Chelsea Groton’s relief move via Hartford or Zoom.
Tancredi said Gates failed to “perform or complete” the payment of $10,000 to the bank as ordered, or failed to explain the reasons for such failure and the source of the partial payment of $6,000. I am writing.
The judge also noted that Gates failed to provide evidence of “good faith efforts to secure an investment, refinance, or sale of the assets of Spicer Mansions,” New London Superior Court Judge Karen Goodrow said. cited the July 27 conclusion of He had “seriously” violated the town’s zoning regulations.
Goodrow sided with the town following a series of remote hearings in May and June, including testimony from town officials and hotel customers. It concluded that Realty willfully violated a 2020 court order banning it from operating public restaurants, basement “speakeasy” bars, and hosting large weddings and other events.
The judge dismissed Gates’ claim that the town’s order was unclear or vague. A sanctions hearing is scheduled for September 2, he said.
Tancredi also said Gates won his role in the failed foreclosure sale of the Spicer Mansion after Gates’ business associate Ross Weingarten submitted a low bid of $3.52 million. I also mentioned that I didn’t address it.
Superior Court Judge Robert Young granted Chelsea Groton’s request that Weingarten forfeit the $367,000 security deposit because Weingarten failed to meet the deadline for signing the contract. Weingarten appealed to the state court of appeals, challenging Young’s grant of the bank’s request and the judge’s denial of a motion to reconsider the matter.
According to Tancredi’s orders, the sale of the new Spicer Mansion could take place “within 45 days.”