Little River”s Heritage House has won another last minute reprieve from a foreclosure sale on the courthouse steps.
The sale, set for Wednesday, has now been postponed until Nov. 18. The request was made by the German bank that is seeking to foreclose on more than $20 million in loans to Lantana Mendocino LLC.
The newspaper got this information from the foreclosure line of Chicago Title Company. Nobody involved has as yet responded to questions about who the current owner really is, much less about the future of one of the Mendocino Coast”s most storied and important businesses.
Following last week”s story, the newspaper did hear from executive chef Nancy Kinchela, who didn”t want to consent to an interview. She was mentioned as an employee in a legal filing in which HH LLC, as previous owner, was granted possession of Heritage House from Lantana Mendocino LLC.
HH LLC sold the Heritage House to Lantana Mendocino for $26.5 million in 2005. HH LLC carried a $7 million second mortgage.
That junior deed of trust was used to gain a stipulation granting possession of the hotel to HH, according to court documents found in the county recorder”s office.
A further look into those documents shows Maureen O”Connor signed that repossession earlier this year as representative of HH LLC. O”Connor, former mayor of San Diego, has been active in Mendocino Coast businesses for decades.
O”Connor and her twin sister purchased the Heritage House in 1998 from the Dennen Family as HH LLC. The Dennen family purchased the 1878 farmhouse and made it into an eclectic hotel complex with no phones in the rooms but with a beloved cadre of repeat customers.
HH sold that 66-room hotel complex in 2005 to David Wilk, Duane Werb and other unknown partners in Lantana Mendocino. Wilk, who has been widely called the owner this summer in media accounts, including this newspaper, signed the stipulation giving possession to HH LLC, as representative of Lantana.
The repossession by HH LLC this spring was to include areas then said to be occupied by Kinchela and 29-year employee Joanie James. Kinchela was concerned that people would wrongly think she was responsible for the mounting bills in some way.
There is no evidence the two women have ever been involved in the ownership. James was surprised to find she was mentioned in the suit and said the two were not involved in any way but as employees.
The county recorder”s office continues to show Lantana LLC as owners. It is unclear if the stipulation in which Lantana agreed to grant possession to the previous owners was actually enforced.
This newspaper had hoped that one of the many parties we spoke to, including the attorney for HH LLC, would clarify who now should be called the owner of the hotel.
Most had no comment or didn”t respond.
While lawsuits and judgments have mounted, Lantana has continued to work on keeping the property and paying the bills. County records show a $400,000 loan was given in September to Lantana Mendocino by Creek Wood LLC, using the lien-troubled property as collateral. Just this week, the bank granted an extension on its foreclosure, indicating work happening behind the scenes to pay bills or find new owners.
When Wilk consented to an interview last summer, he didn”t mention the filings granting possession to the previous owner. He did say negotiations were under way to sell the property, despite the financial problems and lack of available loan money in the market.
This newspaper would still like to discuss the future of the Heritage House. Please email frankhartzell@gmail.com to discuss the future of the Heritage House and its employees and customers.
