October 28, 2009

Special Judge Jeff Hines listens to John Reed of Louisville, attorney for Executive Inn owner Bhupinder Singh, in McCracken Circuit Court on Tuesday. The hearing concerned the possible foreclosure on the closed hotel.

Calling the Executive Inn the biggest public nuisance in McCracken County, Special Judge Jeff Hines wants issues surrounding a foreclosure lawsuit settled no later than Nov. 20 so a new owner can take over and prevent the hotel from being without heat during the winter.

Hines appointed Hopkinsville attorney Doug Myers on Tuesday as a mediator for hotel owner Bhupinder Singh, mortgage holder Logan Asset Backed Fund and the Paducah-McCracken County Convention Center Corp.

Another hearing is scheduled Nov. 20; Hines hopes attorneys report a settlement.
The lawsuit involves foreclosure action by Logan, claiming Singh has defaulted on a $3.5 million loan. Numerous other claims have been made in the lawsuit, including one by Singh that the convention center corporation violated his lease for the adjoining Julian Carroll Convention Center when it was renovated without his permission and rented for events.

The hotel has been closed for much of the past 14 months.

“What we’ve got here is property that is deteriorating day by day,” Hines said. “If this isn’t resolved before winter, pipes will burst and other things will happen to make the building useless.”

He said there is no security at the hotel, animals are infesting it, vandals are causing damage and the homeless have been breaking in. “It is the biggest public nuisance in Paducah and McCracken County,” Hines said.

He also noted the city issued notices of building code violations, and predicted that if the hotel remains without heat this winter, the next step will be the city condemning it and ordering demolition.

Todd Farmer, attorney for Logan, reported that negotiations to settle issues with Singh ended earlier this month after the city building inspector issued the building code violation notice. Violations included broken windows and debris falling from the structure.

Logan also was concerned about the long-term ramifications of taking over Singh’s interest in the hotel without first having agreements with the convention center corporation, which owns the land.

Topics with the convention center corporation range from taking over Singh’s lease to selling the hotel to the convention center board, Farmer said. Those negotiations are very preliminary and will become part of the mediation, he said.

John Reed, Singh’s attorney from Louisville, told  Hines that when negotiations abruptly ended last week, he and Farmer had resolved the substantive issues that would have removed Singh from the lawsuit. He did not give details. Reed said issues already agreed to can help speed the work of a mediator.

■ The city of Paducah withdrew its motion for a summary judgment in which it was seeking an order for the hotel’s sale to pay city taxes. Judge Jeff Hines earlier this month said he intended to grant that motion and order the hotel and land sold at public auction. If that happened, the Paducah-McCracken Convention Center Corporation would have lost ownership of the land. Lisa Emmons, the city’s attorney, told Hines the motion was withdrawn “in the best interest” of the city.


■ John Reed, the Louisville attorney for hotel owner Bhupinder Singh, told Hines that boarding up broken windows and doors, and making temporary repairs to secure the building and resolve building code violations, was scheduled to begin on Tuesday. However, no work appeared to be in progress late Tuesday afternoon. Paducah Building Inspector Joel Scarbrough said he wasn’t notified of the work, but said if windows and doors are secured, it would resolve some of the violations.


■ Todd Farmer, attorney for Logan Asset Backed Fund, which seeks to foreclose on the hotel, said Logan is considering taking action to prevent deterioration of the hotel if it isn’t sold before winter. Action could include draining pipes, so they don’t freeze, and finding a way to heat the building.