NACOGDOCHES, TX (KTRE) - There is still no buyer for the Hotel Fredonia.
No bidders appeared at the foreclosure sale that was held Tuesday morning. As a result, the bank continues to hold the note while the city of Nacogdoches misses out.
Texas State Bank's attorney, Paul Clark asked for a Hotel Fredonia buyer of its first-lien deed of trust.
"If there's anybody interested in making a bid, we request you identify yourself now," Clark said.
Curious bystanders ignored noisy street traffic Tuesday. Instead, they focused on the silence.
Once again, Texas State Bank was the only bidder.
"We enter a bid of $ 1,670,000," said Mary Lowery, the CEO of Texas State Bank.
Texas State Bank continues to hold the first and third liens and owns the hotel furniture. A year after previous owner Susan Pack Reents closed Hotel Fredonia there are no interested buyers.
"We're losing a lot of conferences and meetings because we don't have the adequate space," said Nancy Windham, the CEO of Nacogdoches Economic Development Corporation. "And as for as NEDCO is concerned we are actively working toward finding organizations and individuals that would be interested in helping bring the hotel back."
The drawback for buyers are debts and renovation costs. More than $2 million is owed on the first lien with interest building up at over $800 a day. Then there are the taxes.
"I have a copy of the current taxes for 2014, which are now due and owing in the sum of $37,864.58," said Keith Swearingen, a trustee.
"If you were to purchase the property, it would be subject to that obligation which the new purchaser would have to pay," Clark said.
Sellers continue to market the property as its first intention, a first-rate hotel and convention center, combined with a rich history dating back to 1955.
The next step is to keep searching for a buyer. The last time Hotel Fredonia closed was in the 1980's, when it was shut down for four years.