Print this story |
E-mail story |
This story has 17 comments Add your own |
iPod friendly | Bookmark this
What is this?
Judge rules against Albert Lea Inn owner
Order requires her to pay the costs
Published Thursday, July 2, 2009
Freeborn County District Court Judge John A. Chesterman on Tuesday ordered a personal money judgment against one of the owners of the Albert Lea Inn for $1.47 million.
The ruling against owner Tonya Navarro includes principal, accrued interest and late fees, plus the expenses and attorney fees for American Bank of St. Paul in the case of mortgage foreclosure of the hotel, according to court documents.
Navarro also is required to pay the bank for the costs of collection it incurred in attempts to obtain the judgment, court records state.
The written order filed in court stated counterclaims against American Bank entered by Navarro and Blue Dragon Properties LLC — the managing company of the Albert Lea Inn — have been “dismissed with prejudice.”
“Based upon the evidence presented, the arguments of counsel, the files and records and the inferences reasonably deducible therefrom … the court being fully advised in the premises, determines that there is no triable issue as to any material fact and plaintiff is entitled to judgment as a matter of law,” court records state.
A judgment was previously filed against co-owner Ruben Navarro in the matter, said Albert Lea City Attorney Lee Bjorndal.
According to court documents, in April of 2007, American Bank loaned Ruben and Tonya Navarro, the principals of Blue Dragon Properties, $1.33 million to purchase the hotel. The loan was secured by a mortgage on the hotel.
American Bank alleged that Blue Dragon Properties failed to meet its obligations and last October filed action in Freeborn County District Court seeking foreclosure on the property, according to court records. Tonya Navarro filed a response to the allegations, alleging she received a predatory loan.
At the end of December 2008, American Bank filed a motion for the mandatory appointment of a receiver, to which Navarro filed an opposing affidavit.
Court documents state a meeting was held in March of 2008 between the president of American Bank and Navarro, who requested an additional loan and a deferral of monthly mortgage payments for several months. At that meeting, the president of the company asked for financial statements and disclosures from Navarro and advised her that American Bank could not make a decision about the loan or the deferral of monthly payments without those statements.
Court records state Navarro did not submit the required financial documentation until the end of May 2008. The bank sent a letter advising her that she did not qualify for a new loan and that the bank could not defer the monthly mortgage payments.
“The court has heard the testimony of Ms. Navarro and does not find her to be credible in her assertion that American promised Blue Dragon and Ms. Navarro a loan and that American would agree to defer monthly mortgage payments for any months,” documents state.
In April, Chesterman appointed a receiver to manage the financial affairs of the hotel. The business closed to customers around that same time.
On June 8, Blue Dragon Properties filed a petition for Chapter 11 reorganization bankruptcy protection and will thus be granted an automatic stay against further court proceedings.
As of Tuesday, Navarro owed $1.43 million in principal, accrued interest and late fees, with interest accruing at about $290 per day until it has been paid.
According to the commercial guaranty agreement that Navarro entered into, in the event of default, she would also be responsible for American Bank’s attorney fees and costs. As of Tuesday, those fees totaled about $42,500.
WOULD YOU LIKE TO SHARE THIS STORY?
Comments
Posted by realtree (anonymous) on July 2, 2009 at 10:23 a.m. (Suggest removal)
What were they thinking that they could continue running the place and forget they owed the bank?
Posted by 57boy (anonymous) on July 2, 2009 at 12:11 p.m. (Suggest removal)
Thanks to some very mis-management...these owners cost a local organization from having their state convention here this year.This would of brought alot of $$$$ to them & the local area.Albert Lea loses again !!!!! Would of had nearly 100 rooms rented,from Thursday through Sunday on a weekend in September.These visitors would of spent $$$$ in the town,as well as at the organization hosting this event.Let's hope that someone who knows what they are doing will bring this place up from the ashes,& get it running again!!!!
Posted by Videoguy84 (anonymous) on July 2, 2009 at 12:35 p.m. (Suggest removal)
I agree with you 57boy, the facility itself shows potential, too bad this woman had to run it into the ground. Hopefully someone steps in and sees this potential...last thing AL needs is another vacant business.
I heard from a guy who used to work there that "this woman had no business running a hotel", and well I guess he was right.
Posted by Tyr (anonymous) on July 2, 2009 at 12:51 p.m.
(This comment was removed by the site staff.)
Posted by moonlight (anonymous) on July 2, 2009 at 4:53 p.m. (Suggest removal)
ok so we all have heard about tonya what about all the employees that worked there our lives changed without notice and now our unemployed and what about the payroll checks that bounced and that we had to pay that back out of our own pocket people dont know that and tonya has made no attempt to pay us back and are wondering if she is going to or we just have to chalk it up as a loss out of our own pocket people say dont judge her thats true but what about the employees give us credit and think about what were going through
Posted by buddy (anonymous) on July 2, 2009 at 11:11 p.m. (Suggest removal)
I think we should all take a better look. 57 was right about all the revenue that AL is going to lose. But you know what? I been following the situation a bit and I now as a Monday morning quarterback have ascertained that this was maybe a cooked up scheme for the whole time,Maybe the Tribune can give us a good chronicled report of things that happened. Or maybe they won't but they do have the talent and certainly the facts. What do you say Gals and Gents, will you take the challenge? Thanks-You
Posted by speakup (anonymous) on July 3, 2009 at 9:18 a.m. (Suggest removal)
just goes to show, not everyone is cut out to be a business owner!
Posted by demo1960 (anonymous) on July 6, 2009 at 2:16 p.m. (Suggest removal)
Very simple - this owner didn't understand even the basic of bookkeeping principals. They spent more than they brought in. Should have spent the money on an accountant instead of air conditioners.
Posted by demo1960 (anonymous) on July 6, 2009 at 2:56 p.m. (Suggest removal)
If payroll checks were bounced, why isn't the owner being charged with theft. The ex-employees should pursue the matter.
Posted by Gophergirl (anonymous) on July 6, 2009 at 10:12 p.m. (Suggest removal)
Seems like Miss Tonya finally got a good old fashioned dose of Karma...good riddance!
Posted by Tyr (anonymous) on July 8, 2009 at 8:39 a.m. (Suggest removal)
The President of American Bank must have read my post and called the Trib for it to be removed. I was not malicious in any way nor did I use profanity. I was simply questioning the bank's commercial lending policies. Lighten up folks and let's face it; it was ridiculous to lend that kind of money to this individual.
Posted by hunterdaisy (anonymous) on July 8, 2009 at 10:12 p.m. (Suggest removal)
And why is Miss Tonya still driving around with November 08 tabs and Illinois plates on her Chevy Tahoe that isn't even registered in her name, if it was any other citizen the alpd would have had us pulled over with expired tabs no later than 10 days after the expiration date and it's now July 09. Also she hasn't paid any social security, unemployment taxes, federal or state taxes on her ex employees, and I know that for a fact because I am one of those ex employees. Why isn't she being prosecuted for that and also the worthless paychecks we had to cover at our own banks because she don't have anything. But it's funny because she can always come up with money to go out drinking and to the casino, but not try to make it up to the ex employees that are out that money. How does that work? But it looks like her defensive system is coming down because the parents are already back in florida. The rest won't be far behind including Miss Tonya. I agree, Karma is on her tail.
Posted by hunterdaisy (anonymous) on July 8, 2009 at 10:22 p.m. (Suggest removal)
Also, the bookkeeping was a joke. Poor Carol MacRae(R.I.P.) is probably rolling over in her grave. She took pride in her job and that hotel was her life for over 40 years and Tonya ruined that whole place in less than 2 years. You should be ashamed Tonya. She should be and will be judged.
Posted by moonlight (anonymous) on July 8, 2009 at 10:57 p.m. (Suggest removal)
right on hunterdaisy isnt that the truth tonya seems to get away with everything and im getting tired of it something needs to be done as an x employee i am thinking of pressing charges against her because that isnt fair to us what she did after all we did for her
Posted by hunterdaisy (anonymous) on July 10, 2009 at 3:23 p.m. (Suggest removal)
Moonlight- I totally agree, she gets away with everything. If it was one of us they would have our butts in jail a long time ago.
Posted by policemisconduct (anonymous) on July 11, 2009 at 4:22 a.m. (Suggest removal)
FBI.gov shows that as of 2006, Fulltime Law Enforcement employees averaged 1.5 per 1000 people for the cities of Owatonna, Faribault and Austin. Why does Albert Lea have 2.1 Law Enforcement Employees per 1000 people? Albert Lea could cut up to 9 Fulltime employees at the Albert Lea Police Department and still average the same as Owatonna, Faribault and Austin. Please don't raise our property taxes. AL Citizens
Fulltime Employees
http://www.fbi.gov/ucr/cius2006/data/tab...
City Population/Crime
http://www.fbi.gov/ucr/cius2006/data/tab...
Posted by Me2 (anonymous) on September 12, 2009 at 7:18 p.m. (Suggest removal)
policemisconduct-- Your posts have nothing more than personal vendetta written all over them. Feel free to check out the virtually one track theme of cop bashing by clicking on his username. So telling.
Post a comment (Terms of Use Policy)
(Requires free registration.)