Saturday, June 6, 2009


The Executive Inn faces a Wednesday deadline to improve its fire alarm system or the Paducah Inspection Department will order the hotel to close.

The hotel also faces the threat of a fourth mechanic’s lien from a contractor who did general construction work to prepare for the April quilt show. The company, owned by John Scott of Owensboro, claims in a letter to the Paducah-McCracken County Convention Center Corporation that it is owed $129,021.

The hotel, which had closed since September, reopened April 17 under a temporary certificate of occupancy that the Paducah Inspection Department issued. The permit was for 14 days and expired on May 2but the hotel remains open.

Chief Building Inspector Joel Scarbrough notified operator Bill Parsons that he was setting a deadline of 4 p.m. Wednesday to qualify for a permanent certificate of occupancy. If the certificate isn’t obtained, “you shall cease and desist operation of the facility,” Scarbrough said in a two-page letter.

“The main issue is continued problems with the antiquated fire alarm system that continues to malfunction, which must have a re-certification produced on or before that date,” Scarbrough told Parsons.

The letter did not list other improvements necessary to obtain the new permit.

“I regret it has had to come to this, but you have had an additional month to address these issues,” Scarbrough said. He added he will not extend the temporary certificate of occupancy.

Problems with the fire suppression system almost prevented the hotel from reopening in April. Pumps operating the system did not function properly, and were one of the final items that needed to be repaired to obtain the temporary occupancy permit.

Parsons on Friday did not return a telephone message seeking comment. He is operating the hotel under an agreement with owner Bhupinder Singh.

Parsons also has a contract to buy the hotel for $9 million, but problems in obtaining financing to buy, renovate and expand the facility have delayed the purchase for more than six months. Parsons’ plan would cost more than $40 million.

He faces a June 15 deadline for closing the deal, after which city officials will seek another developer. Parsons has said he remains confident he can close the deal, and said last week he’s pursuing several financing options.

More than 100 rooms are reserved for a Eagles Club convention this month at the Julian Carroll Convention Center that adjoins the hotel.

Parsons faces mounting debt for work necessary to repair and clean the hotel, which deteriorated while being closed for six months.

He originally estimated the work would cost less than $300,000, but said last week the final bill will exceed $550,000.

At least four contractors claimed they haven’t been paid for work costing in excess $284,000.

Attorney David Kelly wrote Parsons and the convention center board saying that he intends to file a lien for the $129,027 owed to E Services, Scott’s firm.

Kelly said the funds are owed for labor and materials and that the last work was done on May 15. When the hotel opened, Parsons praised Scott for overseeing and coordinating the repairs.

Kelly’s letter follows three other liens he filed last month on behalf of contractors. Premier Fire Protection says it is owed $61,761 for repairs to the fire suppression system, Bill Barnhill and Associates of Metropolis, Ill., has a bill for $52,725 for unspecified work, and Consolidated Mechanical of Owensboro filed a claim for $40,538 for work to repair the heating and air conditioning.

The liens are against the hotel property, and would be paid from proceeds of the sale. Parsons said previously that he intends to pay the bills when he buys the hotel.

Premier Fire Protection’s bill, however, may be paid by the city. Mayor Bill Paxton guaranteed payment because the company would not certify that the system was working without such a promise.

As published in the Paducah Sun, June 6, 2009