BLOOMINGTON — The keys to one of the city’s largest and most recognizable hotels could end up in the pockets of different owners.
Adidev Developers LLC is pursuing the purchase of Chateau Hotel and Conference Center, 1621 Jumer Drive, Bloomington. The pending sale price of the conference center is $350,000.
“The entity purchasing the conference center is the same entity purchasing the hotel,” Adidev’s attorney, Nicolas Nelson, with the Jacob & Klein Ltd. law firm in Bloomington, confirmed to The Pantagraph on Friday.
Nelson declined to comment on the pending sale price of the hotel, noting that “individual project details are still being ironed out.”
The limited liability company is housed under the Bloomington-based investment firm and ownership group Adidev Ventures. Representatives of the firm could not be immediately reached Friday.
Hints of the pending sale were first released in a document attached to an item on the consent agenda for Monday’s Bloomington City Council meeting.
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If approved by the council, the proposed document — known as an assignment of lease agreement — authorizes Adidev to purchase the conference center from its current owners, SDO Fund II D37.
SDO is an LLC based in Florida. The company’s attorney could not immediately be reached for comment Friday.
Council approval of the proposed assignment of lease agreement is necessary because the city owns the 3.28 acres the conference center sits on, and has leased the property for $1 per year since 1986. The city does not own the 7.67 acres the hotel sits on.
The $1 pear year lease provision expires in 2027, according to the proposed assignment. The assignment also notes that the sale of the conference center can only take place during a two-year period between Jan. 1, 2026, and Dec. 31, 2027.
“Before making substantial investments in the property, Adidev is seeking that the City formally acknowledge the lease terms, standing and consent of the assignment,” a city staff memo attached to the assignment reads.
“Adidev will be required to continue to operate the property as a conference center under the City’s lease and abide by all terms therein,” the memo reads.
Bloomington City Manager Tim Gleason in an emailed statement said he’s “encouraged that interest is being shown in the property and that there could be a future for the spot.”
The move is the latest development in the ownership saga of the five-story, 180-room hotel, which was bought for $7.315 million by Bloomington Chateau Partners LLC in 2002, 14 years after it opened as Jumer’s Chateau and three years after Jumer’s filed for Chapter 11 bankruptcy.
At the time, Bloomington Chateau Partners was $8.3 million in debt, including $8.1 million owed to Wachovia Bank Commercial Mortgage Trust.
The previous ownership group for years also struggled to pay its local food, beverage and hotel/motel taxes to the city, resulting in series of tax liens against the property. From 2014 to 2019, the group had paid the city $307,058 in outstanding taxes.
SDO purchased the debt on the property and took over the foreclosure action in December 2016. Three years later, SDO foreclosed its commercial mortgage for the hotel and conference center, giving SDO ownership.
SDO last month made the first half of its 2020 total $29,858.78 property tax payment on the conference center. It has yet to pay the first half of its 2020 total $90,362.60 property tax payment on the hotel, according to property records.