The biggest hotel in Ocean Shores is scheduled to be sold at auction.
The April 19 edition of the Montesano Vidette, which publishes the county’s official legal notices, carried a notice that the Shilo Inn of Ocean Shores will be sold at public auction on May 18.
According to the “trustee sale” notice, the Shilo was five months behind on monthly payments, totaling $171,080.
Additionally, the notice stated the Shilo is also two years behind on property taxes, totaling more than $170,000.
And the Shilo has failed to meet its first Ocean Shores Street LID payment of more than $11,000.
Wes Raborn, legal consul with the Oregon-based Shilo Inns (there are more than 40 Shilo Inns around the country), did not return phone calls early this week.
The North Coast News spoke to Raborn in February. “We’ve been working actively with the bank,” he said, at the time.
“I think the bank and Shilo Inn will come to a consensual agreement that both sides are happy with.”
Two months ago, he said a trustee sale was unlikely to occur. “We’d hate to see that happen,” he said.
As for the Ocean Shores hotel, it was “business as usual – this has no effect on our business,” Raborn said.
According to a recent Oregonian newspaper article, “A Southern California bank has sued Shilo Inns and the hotel chain’s politically prominent owner, Mark Hemstreet, claiming that Hemstreet and three of his inns defaulted on loans.
“The suits, filed in U.S. District Court in Oregon last week, say that Shilo Inns missed interest payments last fall on loans of $5.2 million to properties in Seaside, Newberg and at the Rose Garden in Portland.”