A Parsons hotel that closed July 31, 2020, will be auctioned at a sheriff’s sale next week.
The sale of the former Super 8, 229 Main, will take place at 10 a.m. Wednesday on the east steps of the Labette County Courthouse in Oswego. Om Parmatma is the Kansas limited liability company that owns the property, and Simmons Bank foreclosed on the property. Others listed in the 2020 civil suit filed in Labette County District Court are Hilamkumar M. Patel, Keniben B. Patel, Mahendrabhai H. Patel and Pragnaben M. Patel.
A journal entry of judgment in the case filed March 2 notes that Hilamkumar M. Patel attended a March 1 hearing in the case and did not object to the bank’s motion for summary judgment in the foreclosure.
In the suit, the bank reports it loaned the borrower $1,202,000 on Feb. 12, 2014, and that per an agreement that amount increased to $1,252,000. The Patels signed guaranties for the loan repayment and also waived all redemption rights, and Hilamkumar Patel also provided his life insurance policy as loan security. A security agreement conveyed to the bank interest in the building, inventory, accounts, deposit accounts and investment property.
According to the civil suit, Simmons Bank issued a demand letter on Dec. 11, 2019, asking the Patels to honor terms of the loan and accelerated the amounts due under the note.
As of Jan. 13, 2020, the amount due was $1,115,220.08 on the principal amount of the loan, $23,210.52 accrued interest, $912.10 in late fees and miscellaneous expenses of $2,230. These totaled $1,141,572.70 at the time, but the interest has accrued since.
The judgment grants Simmons Bank the right to sell the hotel property and apply the sale proceeds to the debt.
A note on the hotel’s door indicated that it closed July 31, 2020. In August 2020, the LLC that owns the motel owed $107,559.59 in property taxes, penalties and fees to Labette County for three years of unpaid property taxes.