A bank filed papers in state Supreme Court in Fonda last week to begin foreclosure proceedings on the EconoLodge motel property on Riverside Drive in Fultonville.
Owners could not be reached for comment Friday, and it was unclear if the motel, which factors into the village’s waterfront redevelopment plans, will be closing.
Mayor Robert Headwell on Friday said he hasn’t heard any word from the facility’s owners about the status of operations there.
But, he said, judging by the empty parking lots, business at the EconoLodge and other motels he sees in Fulton and Montgomery counties has been slow.
The EconoLodge, once the busy Poplar’s Inn located at 123 Riverside Drive on the south side of the Mohawk River, ran into difficulty last year when the town of Glen shut down its water service.
A town official last year said the firm was late on paying for water and sewer services several times since 2006 and the water was shut down in August for a water and sewer service bill of $1,600 that wasn’t paid.
In a March 26 summons, Fultonville Hospitality Group Inc. and several other entities and persons are named as responsible for a $1.27 million loan through the U.S. Small Business Administration.
The motel property in Fultonville and another in Columbia County are listed as collateral for that loan.
The bank that lent the money, Unity, states a $9,400 monthly payment due in October 2009 wasn’t paid.
The motel property and its grounds, close to the Mohawk River, are included in renderings for Fultonville’s riverfront improvements as part of the Mid-Montgomery County Local Waterfront Revitalization Plan.
The motel has a private boat launch, and the nearest public boat launch is at Schoharie Crossing about four miles to the east, according to the plan.
Conceptual drawings suggest upgrades to that boat launch and to the parking lot would improve access to the river for residents and visitors.
It was unclear Friday whether the owners planned to participate in the development ideas.
The recession took its toll on lodging establishments over the past year, but there are some indications recently of an uptick in business, according to Mark Dorr, a spokesman for the New York State Hospitality & Tourism Association.
Data that Dorr provided from Smith Travel Research showed a slight increase in occupancy between February 2009 and 2010. Hoteliers filled 48.7 percent of rooms in February 2009 compared with 49.2 percent this February in the Albany/Schenectady area.
For the entire year between the two Februaries, occupancy rates in the area increased from 43.7 to 45.2 percent.