The Ellicottville Inn will remain open this weekend but is likely to shut down in a few days as the result of Friday's foreclosure by First Tier Bank & Trust.
The bank took possession of the historic inn Friday afternoon after bidding $390,000 at an auction attended by about 30.
On hand for the bidding was Barry Kent, an officer of the company that defaulted on the inn's mortgage, who said earlier this week he didn't plan to bid. He placed bids through his lawyer, Nicholas A. DiCerbo of Olean.
DiCerbo was the only other bidder at the auction, meeting the bank's opening minimum bid of $10,000 by offering $11,000. He later dropped out after a final offer of $380,000.
"The inn did remain open this weekend," First Tier President Randy Brown said.
"We left it open so the people that had reservations would be able to use them for this weekend. The first part of the week we don't know exactly what is going to happen. We haven't made that decision at this point. It would appear as though we probably will close it."
For an hour after the close of bidding, Kent met with bank representatives in an attempt to negotiate an undisclosed purchase offer.
But that offer was rejected, Kent said.
The inn, with its restaurant, bar and 24 hotel rooms, employees 20 people, according to bank representative Gary Rougeau.
The corporation headed by Kent and Mary Magnano, Ellicottville Inn Inc., owed the bank $688,000 and is three years behind in payments to Cattaraugus County for real property taxes and other levies totaling $81,521.
Also, the New York State Division of Taxation and Finance placed a lien against the property for other debts.