More than $7 million owed on Main Street hotel

(Daily Herald) A Seattle investment firm, saying a key figure in the Silver Queen Hotel on Main Street owes $7,250,000 on their units in the building, is preparing to auction the condominiums off in a trustee's sale in April.

A notice of default filed in the Summit County Recorder's Office named Jana Potter and two business entities tied to the Silver Queen. The notice said the payments on the units have not been made on schedule. The deed of trust dates to 2008.

The president of the investment firm, John Hoss, said in an interview the full $7,250,000 was due to Olympic Coast Investment, Inc. on June 1, 2009. Hoss said the Silver Queen has not paid the principal and now owes interest payments as well. The trustee's sale is scheduled April 1.

Olympic Coast is the lender on 10 of the 12 condominiums in the building and the commercial space on the Main Street level, Hoss said. If Olympic Coast completes its move against Potter and the business entities, it would be the majority owner in the building.

Should Olympic Coast auction the condominiums and commercial space in a trustee's sale, Hoss said the minimum bid will likely be approximately $7.3 million. He said he does not expect the units will sell at auction, though, and his firm will likely operate the Silver Queen for an undetermined period of time.

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