What’s going on with the Fitzgerald’s Hotel and Casino? Here is some circumstantial evidence:
– Commenters over at downtownmakeover Have been saying that the lights have been on. There is new letting on the marquee announcing ” Closed for Renovation”. Peeking in the window, there is definitely some clean up activity going on.
– The Fitz had been one payment delinquent in their property taxes. They came current 13 April 2010.
– A permit has been filed and interior demolition begun at the Old Reno casino on Commercial Street adjacent to the Fitz tower. This is the same owner, as a different entity. Clean up work also seems to be going on at the old Golden Phoenix property on Sierra Street. There has been a dumpster in the street for a couple of weeks, though it isn’t getting filled up to fast. Again, same owner as a different entity.
– The 1st mortgage on the Fitz is coming due 5 May 2010, after already being modified once.
– Here’s where it gets really interesting. The sellers of the Fitz provided a 2nd $2,000,000 mortgage for the purchase. Last Monday, they filed an Assignment Security Agreement. The document reads just like a reconveyance where the loan has been satisfied. My guess is that DRW Fitzgerald Investor LLC negotiated a buy-down on the 2nd mortgage, and paid off loan.
I think the Fitzgerald’s project, at least to some degree, is moving forward! My fear was that it was going to go into default. But you don’t pay off your back taxes, or buy out your 2nd mortgage, or initiate construction next door when you are about to send your project to the courthouse steps. What are you up to, Fernando? Is a new 1st loan or another modification going to show up this week?
Fun Fact to know and Tell – Fitzgerald’s doesn’t own the corner of N. Virginia and Commercial, where the rainbow bridge used to attach. There is a separate 1133 SF parcel there that is leased from the descendents of the Oppio family.
And another plug for my favorite downtown business: Raymond’s Sourdough Bread has reopened on N. Virginia between 2nd and 3rd, right next to the old Golden Phoenix casino. Their sourdough ROCKS the house, and their Double Dutch Crunch is even better. The bread is proofed and par-baked in their South San Francisco headquarters, and shipped up here daily for final baking. If you call ahead or are willing to wait 10 minutes, they will finish off a new batch just for you! Please patronize Raymond’s – you’ll love the bread and downtown could really use a success story right now.