Anderson Hill Road Capital LLC may not replace U.S. Bank, for now, as the plaintiff in a mortgage foreclosure action against the Doral Arrowwood resort.
Anderson Capital claims it has acquired U.S. Bank”™s original $75 million mortgage on the property, but Westchester Supreme Court Justice Gretchen Walsh denied the company”™s motion to take over the bank”™s foreclosure case.
“There is insufficient evidence to establish that Anderson Capital is the current holder or assignee of the note,” Walsh ruled on Jan. 16.
Doral Arrowwood Conference Center and Hotel closed on Jan. 12.
Walsh scheduled a hearing for Feb. 11, to determine who shall be responsible for the costs of “operating and preserving the property.”
“I will not allow this property to be abandoned,” Walsh told lawyers who had gathered in her courtroom on Jan. 7 to discuss how to wind down the affairs of the Rye Brook resort.
There were two issues before the court then: a motion by court-appointed receiver Kirby D. Payne”™s attorney to relieve him of his duties, and a request by Anderson Capital to take U.S. Bank”™s place as the mortgage holder and plaintiff in a foreclosure action.
As to discharging Payne, “not happening today,” Walsh said. She said she needs an accounting of the funds and a plan to pay creditors and secure the property.
Payne said at the Jan. 7 hearing that Doral Arrowwood has about $1.5 million in cash, $1.4 million in projected collections, and expenses of $6.6 million.
As to Anderson Capital, Walsh told its attorney, Thomas Decea, she needs more proof that the company actually owns the mortgage.
Decea said that his client should not be required to keep up the property. Actually, Walsh said, they do.
“Your client went into this with their eyes wide open,” she said. “If they didn”™t want to take responsibility ”¦ they shouldn”™t have purchased the note.”
Walsh adjourned the hearing for two days and urged all parties to work on a plan for the property.
The impending closing was disclosed last month in court documents.
“Due to the lack of funding,” Payne stated in a Dec. 24 affidavit, the property “is in dire financial condition. ”¦ Jan. 12 is the date the last major profitable group checks out of the hotel before a period of slow business where additional losses and obligations are incurred.
“Based on the present financial condition ”¦ and in my professional judgment, the hotel operation must cease no later than Jan. 12.”
Benchmark Hospitality of Westchester, the Woodlands, Texas company that manages the resort, filed a Department of Labor notice stating that 275 employees will lose their jobs.
U.S. Bank of Minneapolis filed the foreclosure in March, demanding $58.6 million. Payne was appointed at an emergency hearing the following day, and he immediately began fixing deferred maintenance problems to protect the value of the 114-acre, 393-room property.
He told the Westchester County Business Journal that business would continue as normal and no one would notice any differences.
But Doral Arrowwood continued to run deficits, according to an affidavit by Payne”™s attorney, James J. Veneruso.
Several times, Payne asked for, and received, more funds from the lender to keep the property operating.
By Dec. 11, Veneruso stated, Payne needed nearly $1 million to operate the resort and meet its expenses. Payne asked for more funds, but on Dec. 19, according to Payne”™s affidavit, the lender advised him that, “effective immediately, it would not provide the requested funding.”
Payne had also forwarded his funding request to DCCA LLC, the family company that owns the resort, but he received no response.
“I cannot now properly, effectively and full carry on my duties,” Payne stated, “and therefore it is imperative that I be immediately discharged as temporary receiver.”
When Doral Arrowwood opened in 1983, it was a conference center for Citibank. In 1986, the Kaskel, Blum and Schragis families bought the property, expanded the hotel and developed its reputation as a premier conference and recreation resort.
The families managed Doral Arrowwood until 2015, when they hired Benchmark to run it. A year ago, DCCA sued Benchmark, claiming it had mismanaged the resort. U.S. Bank was alerted to the lawsuit and filed the foreclosure action.
Payne had proposed a plan for an “orderly closing of business operations” by Jan. 12. A skeleton staff would continue working for a month to notify groups, guests, vendors and to close the books.
“On the date of closing hotel operations,” he stated, “there will be sufficient funds to pay the hotel”™s employees their current pay and some other obligations of the hotel. However, there will be insufficient funds to pay other obligations or to properly shut down systems and physically secure the mortgaged property.”
It’s really a shame that so many people will be affected by losing their jobs. Another small group of seniors is also being affected. They are a small group of senior women who enjoy a pool membership that makes it possible for them to socialize, support each other with aging issues and most importantly stay active. My mother who will be 84 in March has enjoyed swimming 3-4 times a week for several years. Her group is trying to find something similar that is affordable, convenient with flexible swim hours to no avail.
Look for silver sneakers programs run at many gyms like NY Sports Club. I’ve seen the pool classes in Stamford and great exercise and socializing. Check out my blog post at Steps Home Care website http://www.stepshomecare.com on senior exercise programs in our area.
Purchase College is an affordable option as well. We have an indoor pool, fitness center, and locker rooms available to the public and offer membership packages. Stop by or call 914-6-251-6530
Also consider SUNY Westchester Community College and SUNY Purchase College. Manhattanville College might also have swimming facilities. Best regards!
I have been a member of the Doral fitness center for 20 years .The closing of Doral is beyond sad. A beautiful facility . So many long term dedicated workers losing their jobs . The fitness center has a unique outdoor heated pool . I think of Daniel Webster’s argument in the Dartmouth College case when he told the Supreme Court “ there are some of us who love it.†I hope some way is found to save Doral .
The Doral Arrowood was where our wedding reception was held back in 1998. Alas, like my marriage, the Doral seems to done for also.
I am 86 years old and at the urging of Doral I paid a year’s membership dues, $1600 on December 3. I am so sad that after being a member for nine years, I am left out in the cold. I loved that place and its staff was a model of efficiency and courtesy. Please your Honor, keep Doral alive and operating for the village, its employees, its customers, local businesses, large and small and the members of the sport center. Please keep the Sport Center in business even if the hotel is temporarily closed
Worse, they have taken deposits and cancelled events with no prospect of returning deposits. They have left many young couples thousands of dollars lighter and nothing to show for it. One couple who’s wedding WAS only 2 weeks away. They took a deposit from my niece less than a month ago knowing they were financially strapped and , of course, they didn’t divulge anything, no warning. Red flag…. they would only accept xash or certified check for deposit. It’s disgraceful.
Hi Debra,
My husband, David Smith, is the GM at Hampshire CC in Mamaroneck. He worked for many years at Doral Arrowwood, as did I. He is more than happy to speak with your niece and anyone else who had an event scheduled. Feel free to call him at the Club. 914-698-4610
Is this Debra from IHG?
Yes, it is very sad that a long standing Hotel & Conference Center has now closed. The impact on customers and employees is very difficult for the reasons listed in previous comments. I am delighted that we were able to hire several of the front office team for immediate positions at Crowne Plaza Stamford. We will look for additional opportunities to assist all that have been adversely affected. Thank you.
Mark Speranza, Director of Marketing
Crowne Plaza Stamford
Sad, but its an out of date facility. Big companies don’t do retreats at these suburban style conference centers anymore, so that few left have mostly closed. Corporate events at hotels have mostly moved to downtown convention centers or entertainment locations like Orlando or New Orleans or Nashville or Last Vegas. My sense is someone will buy this, tear down the hotel rooms and build some single family houses or townhouse / apartments.