Harbor Springs, MI

Last spring, I wrote about the beautiful plans for the "Hotel Janelle" Condominium Hotel project set to begin construction in Harbor Springs. To date, there has been no construction. In fact, the only thing that has occurred is the destruction of the former inn that sat on the site, followed by a lawsuit over the hotel's height blocking resident's views of Little Traverse bay, and now foreclosure proceedings! It is of course sad to see, especially when our small community has already seen a similar multi-million dollar project bust in Petoskey. Below you'll find the full article that was published in the Petoskey News Review on March 18, 2010 (copy & pasted for your ease:) You can also read it here: http://www.petoskeynews.com/news/article_20d96d06-3298-11df-9d8a-001cc4c002e0.html

Hotel Janelle, Petoskey Pointe foreclosure sales slated for same day

Posted: Thursday, March 18, 2010 • Updated: Thursday, March 18, 2010, 10:12 am Brandon Hubbard

COURTESY IMAGE An early architectural rendering of what would become known as Hotel Janelle in Harbor Springs. The project has not materialized.

Two stalled multi-million dollar developments in Harbor Springs and Petoskey could find their way to the foreclosure auction block on the same day next week.

The stagnant 18-unit Hotel Janelle condo project in Harbor Springs and halted Petoskey Pointe construction site in downtown Petoskey are both scheduled for foreclosure auction by the Emmet county Sheriff's Department on March 25.

Paper work was filed in September by creditor Michael Sherman, owner of North Coast Credit Company against the Hotel Janelle Development Company owned by developer Rob Mossburg to protect his $1.3 million loan for the project. Sherman and Fifth Third Bank represent the two major investors backing Rob Mossburg, owner of the Cottage Company in Harbor Springs.

Since September, Sherman has repeatedly extended his deadlines for the development project, while Mossburg works on securing an additional partner or means to forward the project.

Most recently, the foreclosure auction deadline was punted from today, March 18, to Thursday, March 25.

Sherman, who owned the Harbor Side Inn created the credit company to back the Hotel Janelle development.

On Wednesday, Sherman said he was continuing to give Mossburg the room to work a deal with other investors and Fifth Third Bank.

"We are not receiving payments but (Mossburg) has said that they are negotiating to achieve a structure for everyone to move forward," Sherman said. "We will continue to postpone our foreclosure in the spirit of allowing a constructive solution to move the project forward."

Mossburg did not immediately respond to a request for comment.

As for Petoskey Pointe, the massive site — stalled since mid-2007— also has a possible date with the auction block on March 25.

A legal notice in the Harbor Light newspaper on Feb. 24, stated Lake Street Petoskey Associates, who proposed the hotel and condominium project, is in default on a mortgage to PNC Bank. The amount listed for the mortgage is about $5.7 million.

Developers for both projects have various possibilities to delay a foreclosure proceeding, such as negotiations with the lender or a potential bankruptcy filing.

Foreclosure proceedings are held at the Emmet County Building in downtown Petoskey.

http://www.petoskeynews.com/news/article_20d96d06-3298-11df-9d8a-001cc4c002e0.html

The Cottage Company of Harbor Springs has begun the Hotel Janelle development project. Construction is said to begin sometime in 2009. The goal is to be one of the Midwest’s finest condominium hotels, and will be located in downtown Harbor Springs. Upon completion, the property will have 18 large luxurious suites, an indoor pool and spa, rooftop cocktail deck with views of beautiful lake Michigan, an exercise club, croquet lawn, and many more features and accommodations for guests.

Suites will feature floor plans with one, two, or three fully furnished bedrooms. Other features may include hardwood floors, fireplaces, nine to ten foot ceilings, custom cabinetry, granite counters, wireless internet, flat screen televisions, room safes, steam showers, and private label items created exclusively for the hotel.

This will be a one of a kind property, in a one of a kind location, and a one of a kind opportunity! With only 18 suites, availability is extremely limited. Work with an agent who will represent you! Please contact me for more information, or to reserve your suite!

Please note: Author is a licensed real estate agent and Realtor for Coldwell Banker of Harbor Springs. All information believed reliable, but not guaranteed. Hotel Janelle is brokered by Graham Real Estate. Author is not an agent of Graham nor affiliated with Broker, Hotel Janelle, or Cottage Company.

We recently spent a week in Chandler, Arizona for the Vacation Rental Managers Association conference. Below is a press release of some of the highlights. Holiday Vacation Rentals is one of the companies I work for- a member of VRMA.

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Press Release

FOR IMMEDIATE RELEASE

LOCAL BUSINESS LEADER ELECTED TO VRMA BOARD OF DIRECTORS AT ANNUAL DEVELOPMENT CONFERENCE

Chandler, AZ ---Alan Hammond, Managing Partner of Holiday Vacation Rentals, Harbor Springs, Michigan has been elected to the Board of Directors of the Vacation Rental Managers Association (VRMA) at its annual conference and business meeting. VRMA is an international trade association that provides professional educational development, programs and resources dedicated to the professional management of Vacation Rental properties.

The Vacation Rental Managers Association (VRMA) sponsored at the Annual Conference a demanding series of professional development sessions focusing on management, employee development, marketing, customer service, operational efficiency, and new industry trends, products and services.

The VRMA 2008 Conference, the twenty-forth annual event, brought together leaders of the vacation rental industry of North America.

Holiday Vacation Rentals (HVR) is a fully accredited member of VRMA, the only professional trade association dedicated to improving the service and performance of the vacation rental industry. HVR manages cottage, condo and fine home vacation rentals in northwest Michigan from Traverse City to the Straits of Mackinac. The company's property care department, Birchwood Property Management, provides condominium association management.

Contact: Alan R. Hammond, Holiday Vacation Rentals, Harbor Springs, Michigan at 231-242-0730 for more information.

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Press Release

FOR IMMEDIATE RELEASE

November 7, 2008

LOCAL BUSINESS LEADERS SUCCESSFULLY COMPLETE PROFESSIONAL DEVELOPMENT CONFERENCE

Chandler, AZ ---Alan Hammond, Katherine Hammond and Jared Hammond of Holiday Vacation Rentals, LLC have just completed an intensive series of professional development educational sessions, conducted by an international trade association. Successful completion of the program reflects a commitment to service and professional management.

The Vacation Rental Managers Association (VRMA) sponsored the demanding series of professional development sessions focusing on management, employee development, marketing, customer service, operational efficiency, and new industry trends, products and services. The VRMA 2008 Conference, the twenty-forth annual event, brought together leaders of the vacation rental industry of North America.

Holiday Vacation Rentals is a fully accredited member of VRMA, the only professional trade association dedicated to improving the service and performance of the vacation rental industry. HVR manages cottage, condo and fine home vacation rentals in northwest Michigan from Traverse City to the Straits of Mackinac. The company's property care department, Birchwood Property Management, also provides Association management services.

Contact: Alan R. Hammond, Board Member of VRMA, at 231-242-0730 for more information.

Company information: www.HolidayVacationRental.com

Harbor Springs real estate market activity continued to slide in 2007, with unit sales and total dollar volume of single family residential transactions posting lows not seen since at least prior to 2001, the last year for which sales statistics are available through the Northern Michigan Multiple Listing Service's computerized database.

There were 118 sales of Harbor Springs homes and Harbor Springs condominiums in 2007, defined as sales of properties located within the Harbor Springs School District. The total dollar volume of those sales was $50,296,695. This compares with 147 sales last year, and a total dollar volume of $64,669,046. Unit sales volume was off almost 20% from 2006 to 2007, while total dollar volume was off almost 23%.

The total dollar volume of sales was the lowest in recent history. The next lowest total was posted in 2001, the last year for which computerized data is available. In 2001, there were 188 sales with a total dollar volume of $52,825,456. Sales in 2001 were impacted by the terrorist attacks on 9/11/2001.

On a brighter note, the median sales price declined only modestly to $261, 500, from $267,500 in 2006 and $269,000 in 2005. The median sales price in 2001 was $225,000.

Note: Based on information from the Northern Michigan Multiple Listing Service for the period from January 1, 2001 - December 31, 2007.