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Springfield hotel another step closer to the auction block

Posted January 17, 2008 10:00 pm

Doug Finke

The state treasurer's office cleared another hurdle Friday in its efforts to sell Springfield's President Abraham Lincoln Hotel and Conference Center at auction.

Sangamon County Circuit Judge Patrick Londrigan entered a new foreclosure order that not only includes the hotel owners, but also the city of Springfield and the Springfield Metropolitan Exposition and Auditorium Authority. Both entities have a financial stake in the downtown hotel.

"It's significant because it concludes the foreclosure litigation, and we can proceed now to a sale," said Matthew Maddox, an attorney representing the state's interests.

The city of Springfield loaned $3 million in grant money to the hotel to aid in its construction 24 years ago. SMEAA gets $100,000 a year from the hotel because it is built on land owned by the convention center authority. Those payments will now stop.

SMEAA also gets money from a separate agreement with the hotel to lease spaces in the convention center parking lot for use by hotel patrons. That agreement remains in effect, said SMEAA attorney Bruce Stratton.

Despite Friday's order, the state is still months away from selling the hotel. It will take another two months to obtain title to the hotel, the next step before it can be sold at auction. Treasurer Alexi Giannoulias would not speculate this week on how quickly an auction might take place.

The current owners owe nearly $30 million in principal and interest on a state-backed loan used to build the hotel. Money made by auctioning the hotel will first be used to pay off that debt. However, Giannoulias said he doesn't expect the hotel will sell for that much money.

Doug Finke can be reached at (217) 788-1527.

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