Spencer hotel again set for sheriff's sale
By Russ Oechslin Journal correspondent | Posted: Wednesday, August 22, 2007
SPENCER, Iowa -- Less than six months ago, it was a bankruptcy action that stayed the sheriff's sale of The Hotel here. That auction now has been rescheduled for 1 p.m. today on the steps of the Clay County Courthouse.
Hotel Spencer Inc. made a "short filing" in U.S. Bankruptcy Court in Sioux City on Feb. 27, the afternoon before the previously scheduled sale, listing between $100,000 and $1 million in both assets and liabilities.
Northwest Federal Savings Bank filed for foreclosure in 2005, naming Hotel Spencer and former owners Sylvia Shine and Caroline Toebes along with Toby Shine and Shine Bros. Corp, which guaranteed notes on the property.
A 3rd Judicial District court order, signed by Judge John P. Duffy he morning of the scheduled sale, temporarily stayed the auction.
Formerly known as the Tangney Hotel, The Hotel was built in the 1920s and had a fifth floor added in 1936.
The landmark in Spencer's downtown business district was closed to guests in May 2006 when Steve Bear said he was having trouble maintaining a staff due to the litigation. Court records detail operating losses for the previous months. Sylvia Shine and Toebes bought the full-service facility, which included a restaurant and a bar, in 1986 and did extensive renovation before selling it to Bear in 2000.
No one involved in the proceedings is talking about the situation publicly.
The foreclosure auction followed more than a year of legal wrangling involving present owner Steve Bear, Shine, Toebes, Shine's husband, Toby Shine, the family's Shine Bros. Corp., Northwest Federal Savings Bank and Ohio Casualty Insurance Co.
Shine Bros. had guaranteed a note to Northwest Federal on behalf of Sylvia Shine and her partner. And when the bank sought to foreclose on the mortgage in 2005, Bear, who bought the hotel, including its restaurant and bar in 2000 but subsequently fell behind in his payments, countersued and also filed suit against the Ohio insurance company when it threatened to cancel the business' insurance.
The suit against the insurance company was dismissed in July.
Judgment against Bear for $283,640 was issued last November, with interest of more than $50 per day due from May 26, 2006. The current sale order lists a judgment amount of $358,983 plus costs of $315.50 and interest of $50.51 per diem, accruing since May 26, 2006.
Bank filed in 2005
The Northwest Federal foreclosure action was filed against Bear's business Oct. 17, 2005. The Shines, Shine Bros. Corp. and Carolyn Toebes were named as co-defendants.
While Bear admitted missing payments, his filing noted an agreement to modify the payments and that Northwest Federal had refused to accept payment. The response also claimed an imperfected security agreement and adds that the plaintiff "did not provide the defendant with a notice of right to cure the default as required." The response cites a "breach of fiduciary responsibility" as causing damages to Bear and also alleges "bad faith."
Calling transfer of stock between the Shines, Toebes and Bear "fraudulent," Bear's response to the bank's action said "Northwest colluded, conspired, assisted and/or entered into a common scheme with Sylvia Shine, Carolyn Toebes and Toby Shine to conceal evidence from the officers of The Hotel (Corp.) of the fraudulent transfer."
Hotel Spencer Inc. made a "short filing" in U.S. Bankruptcy Court in Sioux City on Feb. 27, the afternoon before the previously scheduled sale, listing between $100,000 and $1 million in both assets and liabilities.
Northwest Federal Savings Bank filed for foreclosure in 2005, naming Hotel Spencer and former owners Sylvia Shine and Caroline Toebes along with Toby Shine and Shine Bros. Corp, which guaranteed notes on the property.
A 3rd Judicial District court order, signed by Judge John P. Duffy he morning of the scheduled sale, temporarily stayed the auction.
Formerly known as the Tangney Hotel, The Hotel was built in the 1920s and had a fifth floor added in 1936.
The landmark in Spencer's downtown business district was closed to guests in May 2006 when Steve Bear said he was having trouble maintaining a staff due to the litigation. Court records detail operating losses for the previous months. Sylvia Shine and Toebes bought the full-service facility, which included a restaurant and a bar, in 1986 and did extensive renovation before selling it to Bear in 2000.
No one involved in the proceedings is talking about the situation publicly.
The foreclosure auction followed more than a year of legal wrangling involving present owner Steve Bear, Shine, Toebes, Shine's husband, Toby Shine, the family's Shine Bros. Corp., Northwest Federal Savings Bank and Ohio Casualty Insurance Co.
Shine Bros. had guaranteed a note to Northwest Federal on behalf of Sylvia Shine and her partner. And when the bank sought to foreclose on the mortgage in 2005, Bear, who bought the hotel, including its restaurant and bar in 2000 but subsequently fell behind in his payments, countersued and also filed suit against the Ohio insurance company when it threatened to cancel the business' insurance.
The suit against the insurance company was dismissed in July.
Judgment against Bear for $283,640 was issued last November, with interest of more than $50 per day due from May 26, 2006. The current sale order lists a judgment amount of $358,983 plus costs of $315.50 and interest of $50.51 per diem, accruing since May 26, 2006.
Bank filed in 2005
The Northwest Federal foreclosure action was filed against Bear's business Oct. 17, 2005. The Shines, Shine Bros. Corp. and Carolyn Toebes were named as co-defendants.
While Bear admitted missing payments, his filing noted an agreement to modify the payments and that Northwest Federal had refused to accept payment. The response also claimed an imperfected security agreement and adds that the plaintiff "did not provide the defendant with a notice of right to cure the default as required." The response cites a "breach of fiduciary responsibility" as causing damages to Bear and also alleges "bad faith."
Calling transfer of stock between the Shines, Toebes and Bear "fraudulent," Bear's response to the bank's action said "Northwest colluded, conspired, assisted and/or entered into a common scheme with Sylvia Shine, Carolyn Toebes and Toby Shine to conceal evidence from the officers of The Hotel (Corp.) of the fraudulent transfer."
Story Comments
Read More and Post Comments 0 comment(s)
Please note: The following are comments from readers. In no way do they represent the views of The Sioux City Journal or Lee Enterprises. We will not edit or alter your comments, but we do reserve the right to not post or to remove comments that violate our code of conduct. No comment may contain potentially libelous statements; obscene, explicit or racist language; personal attacks, insults or threats. Terms of Service
