G.F. Management of New Jersey will try to open the Four Points Hotel on Lake Shore Drive East during the week of Aug. 11, William Schober, Chairman of the Board of Directors of the Dunkirk Industrial Development Agency said Friday afternoon.
A series of legal maneuvers over the next two weeks may allow Dunkirk Hotel Associates, a limited partnership that includes GF Management, to take over the hotel.
Banque Indosuez of Paris will need to complete the foreclosure proceeding on the mortgage it holds on the building to clear the title. The estimated $4 million mortgage on the building is owed by Chadwick Bay Hotel Associates. The note would need to be purchased by the partnership, according to Schober.
The Dunkirk Industrial Development Agency owns the land under the hotel. The Agency would continue to own the land in order to offer the remainder of the payment in lieu of tax agreement the DIDA had with Chadwick Bay, Schober explained.
Also, the partnership would have be able to be exempt from mortgage taxes and sales and use taxes. These are normal parts of tax leases that are used by an industrial development agency.
The building would be leased to GF under an agreement with DIDA.
The Agency will hold a public hearing on the proposed lease at City Hall at 11:30 a.m. on Aug. 4.
The hotel closed on April 20, putting 95 people out of work.