The Trenton Times published the following article on October 15, 2013. To read the full article, click here.
Trenton council must approve court-directed sale of city-owned hotel, official says
By Jenna Pizzi/The Times of Trenton
on October 15, 2013 at 8:40 PM, updated October 15, 2013 at 8:41 PMTRENTON — A bankruptcy judge today approved an auction of the money-losing Lafayette Yard hotel, but an attorney for the city said the building cannot be put up for sale without prior approval from city council.
With the city-backed hotel under Chapter 11 bankruptcy protection, Judge Michael Kaplan approved an order allowing its board to borrow money to keep it open ahead of the sale, which is tentatively set for Nov. 25. He also authorized the hiring of an auctioneer.
Kaplan said that without funding to allow it to continue operating, followed by a sale, the hotel would likely shut down, leaving a large abandoned building that would add to the city’s blight and crime problems.
“The options appear bleak,” Kaplan said. “I see all downsides to letting the hotel go dark.”
The Lafayette Yard Community Development Corp. board filed for bankruptcy protection last month, saying the business has struggled to make a profit. The 11-year-old hotel, formerly called the Trenton Marriott, is projected to end the year $880,000 in the red.
Keeping the hotel open will allow it to attract potential buyers and eventually turn a new page, Kaplan said.