Landmark's signs of life to include new business plan

The Landmark Hotel has a new developer and will soon have a new business plan.

Tim Dixon, a boutique hotelier from Milwaukee, hopes to turn the unfinished nine-story structure into a “destination hotel.”

On Monday, a federal judge granted local developer Halsey Minor’s company Minor Family Hotels, LLC a bankruptcy extension to get the project finished, according to Richard Maxwell, attorney for the company.

“What the court did yesterday was extend the period to come up with a bankruptcy plan until January 2012,” Maxwell said.

Minor Family Hotels filed for Chapter 11 bankruptcy in September of last year. Finding a new developer for the unfinished project is part of a long process attempting to resolve the firm’s financial woes.

According to Dixon spokeswoman Brigette Breitenbach, the hotelier plans to make the Landmark an “experience” for guests.

“[Dixon’s] concept is to create a destination hotel that also has experiential food and beverage ... [He and Minor] have been talking for several months about bringing something that is unique to the Charlottesville market, but also new and different.”

Dixon is responsible for the Iron Horse Hotel in Milwaukee, a luxury boutique hotel that caters to motorcyclists.

According to Maxwell, hiring a new developer is the first step toward satisfying creditors of the bankrupt project.

“As Mr. Dixon told the judge yesterday, the first step is to do a full engineering report on the hotel, then there’s a marketing survey to determine occupancy and room rates,” Maxwell said Tuesday. “Then, it’s up to Mr. Dixon to find financing for the completion of the hotel project.”

After that, Maxwell said, creditors will vote on whether to allow the plan to move forward.

“We’re probably three and a half months away from knowing if the expected cost to complete the hotel makes sense given what the expected revenues are,” Maxwell said.

Charlottesville Mayor David Norris said he hopes this means the project is closer to completion.

“We’re all eager to see this matter resolved and see this case resolved,” Norris said. “If there’s another developer ready and willing and eager to step in, assuming Mr. Minor can overcome the remaining hurdles, I think that will be very positive news for city.”

Construction on the Landmark began in 2007, but stopped in November 2008 over financing issues. In December of the same year, Minor fired the hotel’s original developer, Lee Danielson, who was responsible for the Charlottesville Ice Park and Regal Cinema on the Downtown Mall.

Since the project ended, Minor has become embroiled in lawsuits with Danielson and the FDIC, which took over the Atlanta-based Specialty Financial Group, which had originally funded the project.

Neither Minor nor the bank could be reached for comment Tuesday.

Charlottesville Regional Chamber of Commerce President Tim Hulbert said he was happy the project might move forward.

“We wish them good luck; any forward progress is always welcome,” he said.

Reported by:  The Daily Progress