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City gives Hotel Utica last chance to avoid foreclosure

By By JOLEEN FERRIS

UTICA, N.Y. (WKTV) - The city of Utica has sent the owners of the Hotel Utica what could be the last hope for the hotel to avoid foreclosure.

The question is - can the owners make the payments on time?

The city of Utica is nearing the end of a 2.5 year foreclosure proceeding against the hotel for $400,000 in back taxes.

As they're required to by law, the city has hammered out a payment plan for the hotel to help them pay off those back taxes and stay out of foreclosure. They sent the plan to Hotel Utica owners on Tuesday, so now it rests in those owners' hands.

Here's the bottom line of the payment plan:

It's a two year plan - the maximum time length allowed by law, and the payments are between $18,000-$19,000 a month and they have to be made on time. The mortgage payment on the hotel was recently restructured down to $12,500 a month and hotel owners haven't paid that in a year and a half.

The other thing that could save the hotel is a sale. The hotel is on the market right now for $5.9 million, nearly half the asking price of $10.7 million just a year and a half ago.

City officials are hopeful the payment plan will work out, and keep what they consider a historical landmark of the area, open.

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