The improvements to the Manchester Hotel, which closed in 2011, were to be completed by Nov. 15, 2016, and the Snider Building was to be brought in compliance with applicable state and local building, zoning, and building maintenance codes within 24 months of closing, according to a letter the city sent Grau in October 2018.
Neither deadline had been met as of Oct. 4, 2018, according to the city’s letter, which gave Grau 60 days to complete the contract obligations and was told to have all personal property removed from the 97-year-old building by Dec. 4, 2018.
Grau’s attorney filed a complaint on Dec. 18, 2018 and claimed interior demolition work commenced on June 20, 2018, and the timeline for completion had been extended.
Oster issued a temporary restraining order on Jan. 3 pending court hearings that have since been continued. As part of the temporary restraining order, Grau was to obtain general liability insurance for the properties and install secure fencing that previously existed around the Snider Building. Until the subject had been fully litigated, no one could enter, alter or make any encumbrance on the buildings.
Grau told the Journal-News via text that it is the intention of all companies involved “ to work with the city of Middletown to redevelop the Manchester Hotel as a boutique hotel and conference center and the Snider Building as a microbrewery and distillery as planned.”
Grau said the Manchester Hotel LLC, Snider Building LLC and their development partner ML Group Design and Development LLC have secured $14 million in funding for the redevelopment, which includes a $10 millon loan. He said a hospitality management group has also been secured to operate the Manchester Hotel and the Snider Building microbrewery and distillery.
The balance of the funding would include state and federal historic tax credits, and the incentives previously outlined in its agreement with the city and other incentives offered by the city.
Grau said he hopes an agreement can be reached with the city that is mutually beneficial.