With debts listed at more than $3.1 million, the Brookings Inn Resort — including the motel, conference center and Flying Gull Restaurant — will go up for auction at 11 a.m. Monday on the front steps of the Curry County Courthouse.
The businesses, located at 1143 Chetco Ave., closed at the end of November. The motel has 68 rooms — the second largest in the community — and the restaurant seats 75. The staff has ranged from 35 to 50 people, depending on the season.
“The economy is still taking its toll on small business in small towns,” said Brookings Inn General Manager Peter Spratt. He is the agent for the three firms in the Brookings Inn Partnership, which owns the facility.
The Curry County Assessor’s Office lists the real market value of the property as $3,782,110.
Curry County Assessor Jim Kolen said the public foreclosure auction would represent the largest in recent memory.
One way to track the motel business in Brookings is with the city’s room tax, in which the Brookings Inn and Harris Beach State Park would be the largest single contributors.
The total taxes paid to Brookings for the peak travel season — April through September — dropped 26 percent between 2010 and 2011. The 2011 season was the first summer of the loan that is under foreclosure.
The room tax revenues have since rebounded and grown. The actual figures were $96,647 in 2010, $71,367 in 2011, $109,077 in 2012, and $118,690 in 2013.
The Brookings Inn Partnership had owned the facility since 1971, adding the conference center and swimming pool over the past 15 years.
The property is being sold to satisfy debts held back by the National Credit Union Administration when it liquidated the assets of Chetco Federal Credit Union earlier this year. NCUA attorneys handling the sale would not comment.
The loan involved was dated Feb. 26, 2010, by Commercial Lending Solutions, a subsidiary of Chetco Federal Credit Union, according to the public notice published in the Curry Coastal Pilot. Monthly payments of $13,527, the notice said, were due from October 2012 forward, in addition to late charges, Oregon Employment Department liens, federal tax liens and property taxes.
Business loans by CFCU were noted as part of the reason that the NCUA placed the credit union in receivership in September 2011. Spratt was both an officer and board member of CFCU at that time. The NCUA held back the loan when it liquidated the CFCU assets in December 2012 to Rogue Credit Union and Coast Federal Credit Union.
In a February 2011 filing with the State of Oregon, the owners of Brookings Inn Partnership were listed as Wilmot Ltd., of Ronald, Wash.; Pease Investments, listed at the motel address; and Dingle Bay LLC, also listed at the motel address.