ADVERTISEMENT

ADVERTISEMENT

FULL STORY: Hotel Thompson sale approved in court

Receiver Lighthouse Management agreed to pay outstanding taxes and repay the city for pest control measures and roofing materials.

thompson hotel front

WORTHINGTON — The Sep. 12 sale of the Hotel Thompson to Clark Unlimited Properties was approved in court Monday morning.

Legal representation from receiver Lighthouse Management, the city of Worthington and the buyers all weighed in on final arrangements for the sale.

Adam Ballinger, representing Lighthouse Management, explained that Lighthouse filed the court hearing to request approval of the sale, authorization for the receiver to pay outstanding real estate taxes and permission to reimburse the city of Worthington for the $183,000 it spent on pest remediation and roofing materials.

Mark Shepherd, legal counsel for the city of Worthington, added that the city would like to turn over the unused roofing materials to the buyer.

On behalf of the buyer, Todd Ahlquist said "Curtis and Theresa Williams need to be served." The Williamses — who owned the property prior to it being placed in receivership — did not receive the electronic notification of the court hearing and were sent a physical copy of the paperwork on Oct. 23. Ahlquist said he did not feel they had had sufficient time to respond to the court order.

ADVERTISEMENT

To alleviate that concern, Ballinger agreed to file an affidavit declaring that Curtis and Theresa Williams had been made aware of the court hearing and had no objection to the sale of the building.

Fifth Judicial District Judge Gordon Moore approved all requests made by the involved parties.

"Time is of the essence here," Moore said.

The Thompson's boiler has been broken since last winter and needs replacement as soon as possible. Clark Unlimited Properties has already purchased a new boiler, but it needs the sale to be finalized prior to installation.

To allow for this needed repair, Moore ordered an expedited finalizing of the paperwork.

"It's a good day for the city of Worthington," Moore said of the sale. "I'm pleased not to be authorizing the demolition of the building."

He expressed gratitude for the developer's plan to "preserve a historic structure in the middle of downtown Worthington with significant potential value.

"The city council is to be commended for stepping up" and intervening to save the building, Moore added.

ADVERTISEMENT

At Monday evening's city council meeting, City Administrator Steve Robinson shared the update with the city council.

"Everything that has happened has ended up saving the Thompson," he said.

Robinson explained that of the approximately $183,000 the city will recoup from Lighthouse Management, about $101,000 of that originally came from a tax increment financing district created specifically for the Hotel Thompson project. The city may either use those funds to create a new TIF fund for the Thompson, or it may return the funds to the county.

Clark Unlimited Properties has asked for a new TIF redevelopment district to help offset some renovation costs, Robinson added. He recommended that the $101,000 be placed in such a TIF fund as a grant toward the project.

It will take two to three months to set up a new TIF district, because the Thompson would first have to be designated as "blighted property" in order to qualify as a redevelopment district.

City council was amenable to this course and directed staff to pursue the new TIF district.

Related Topics: REAL ESTATE
What To Read Next
“They’re totally new. They’re sophomores, they’ve never competed in BPA.”
Wednesday’s community input meeting at Worthington High School was the third of four planned by the Minnesota Attorney General’s Office.
Rod Burkard now has the opportunity to compete in August at the national event in Pennsylvania.
Women plan to add a mini market and deli to their business in the coming months.