SARATOGA SPRINGS -- The company seeking to redevelop the historic Rip Van Dam hotel property on Broadway has filed for bankruptcy reorganization, staving off a foreclosure auction.
Saratoga Springs Partners, whose principals are brothers James and Thomas D'Iorio, filed for Chapter 11 reorganization with the U.S. Bankruptcy Court in Albany last Thursday, halting a foreclosure auction of the hotel originally planned for last Friday morning.
The partners, the latest in a series of people to drive to develop a modern hotel at the site, listed secured debts including nearly $10.9 million owed to PCG Select Services, a private investment group. The partners also owe $16,642 in unpaid back taxes to the city of Saratoga Springs, according to the court filing.
There is also just over $300,000 in unsecured debt owed to eleven creditors.
PCG Select Services initiated a foreclosure proceeding in state Supreme Court in January 2018, leading to the foreclosure and court-ordered auction that would have been held last Friday if not for the bankruptcy filing.
In court papers, James D'Iorio said while the partners have secured new financing, the debtors wouldn't delay the auction. "The Debtor intends to reorganize its business in Chapter 11 using new financing to pay off its creditors and developing the Rip Van Dam Hotel Project," D'Iorio wrote in an affidavit.
U.S. Bankruptcy Judge Robert Littlefield ordered a May 13 creditors' meeting, and gave parties until Oct. 15 to submit claims.
Saratoga Springs Partners in 2017 offered the latest iteration in the long-running effort to develop land at and behind the Rip Van Dam. Plans approved by the city call for a six-story, 152-room hotel at the back of the Rip Van Dam property, which is at 353 Broadway, on its corner with Washington Street. A parking garage on Hamilton Street is also part of the proposal.