The Board of Directors of the Dunkirk Local Development Corp. took action Monday night to help pave the way for reopening the Four Points Hotel on Lake Shore Drive East.
The board said it is willing to release one of the partners in the hotel ownership from a personal guarantee that was required in June 1991 when the development agency lent Chadwick Bay Hotel Associates, the owners of the hotel, $50,000.
A personal guarantee was required from John Ginley, one of the partners, and at the time of the September 1994 bankruptcy, the principal owed was $37,392. DLDC executive director Patrick Wawro said that sum is close to $50,000 now, with interest and penalties.
The board is willing to release the personal guarantee if Chadwick Bay Hotel Associates drops a $10 million lawsuit against the city over the lack of development on the remainder of the parcel where the hotel is located.
The board also is encouraging GF Management of Mooreshead, N.J., to purchase the facility and reopen it as soon as possible. The hotel has been closed since April 20.
William Schober, chairman of the Board of Directors of the Dunkirk Industrial Development Agency, which owns the land under the hotel, attended the meeting and spoke to the Local Development Corp. directors in executive session.
"If all falls into place, the DIDA Board can meet within 10 days for the drafting of documents," he said.
As part of the deal to sell the hotel, the Industrial Development Agency is willing to sell the land to GF Management for $400,000, to be paid immediately.