Mendon hotel sold at auction for $595,000By Bruce Edwards
STAFF WRITER | September 19,2012Albert J. Marro / Staff Photo
Thomas W. Saturley concludes the bidding for Mendon Mountainview Lodge which went on the auction block Tuesday at noon. Saturley is president of Tranzon Auction Properties. The winning bid of $ 595,000 went to Recreational Properties of Ridgewood, N.J.MENDON — Mendon Mountainview Lodge was sold at auction Tuesday for $595,000, well below the assessed value of $1.26 million.
The winning bidder was Recreational Properties LLC of Ridgewood, N.J.
Company spokesman Bob Sorensen said following the foreclosure auction that the company hopes to reopen the hotel on Route 4 in time for the ski season.
“We are going to hopefully run it as a fine quality establishment and continue improvements,” Sorensen said.
Recreational Properties manages two small ski areas — Campgaw Mountain in Mahwah, N.J., and Blue Hills ski area, just outside Boston.
The 28,280-square-foot Mendon Mountainview Lodge was also home to Kindles, a public restaurant. Sorensen was unsure what the future holds for the 86-seat restaurant but said they would “definitely have some kind of food service.”
On a rainy and blustery day, more than two dozen people mingled in the lobby of the 40-room hotel. Framed photos of the Killington ski area hung from the walls. Firewood was neatly stacked next to the lobby’s stone fireplace. Inside the restaurant, windows were boarded up and tables stacked.
On a bench outside the front door, copies of the August edition of the Hill Country Observer, a monthly paper, had turned yellow.
Promptly at noon, auctioneer Tom Saturley of Tranzon Auction Properties stood in the middle of the lobby and asked for an opening bid of $500,000 but settled for an initial bid of $250,000.
In the familiar auctioneer’s rapid-fire staccato, Saturley coaxed the bid up to $300,000 and eventually, with some prodding mixed with humor, got the price up to $550,000 before calling a short break.
People’s United Bank, which holds the mortgage, reserved the right to bid if it felt any potential winning bid was too low.
However, when the bidding resumed, Saturley said the bidding threshold for the bank had been met and that the hotel would be sold to the highest bidder.
From there, the bid price rose in $5,000 increments until it hit $590,000. Sorensen, who was on his cellphone apparently keeping his home office apprised of the bidding, then increased his bid to $595,000. At that point, Saturley tried to coax the bid up a notch to $600,000 but had no takers.
Brian Godnick of Rutland was one of the bidders but dropped out of the bidding toward the end.
Ray Ault, a commercial Realtor who attended the auction, said the buyer got “quite a deal.”
“It was below the range of what I thought it would go for,” Ault said during a phone interview. “Yet, when you look at it in the context of all of the recent sales by auction or otherwise, it was probably a fairly good price for the auctioneer to obtain for the lender.”
Given its excellent condition, Ault said he thought the property could have commanded a price between $650,000 and $800,000.
Built in 1988, the Mendon Mountainview Lodge occupies 7.4 acres on Route 4 across from the Cortina Inn.
Brian and Stacey Metivier were the previous owners, according to the Mendon Town clerk’s office.
Tranzon’s 91-page prospectus lists back sewer fees of $1,620 owed the Alpine Pipeline Company and $3,265 due to the city of Rutland in back sewer usage fees.
Since the prospectus was issued, the hotel owes $12,000 on the first installment of its $24,000 annual property tax bill.
Tuesday’s auction was just the latest of several auctions of area lodging properties. The Vermont Inn, Holiday Inn and Kokopelli Inn have all gone on the auction block over the last year. The Kokopelli Inn was extensively damaged during Tropical Storm Irene.
bruce.edwards@ rutlandherald.comMORE IN National / World Business
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