Pictured is the Hotel Lenhart in Bemus Point.

William and Jill Curry were excited when they spoke to Bemus Point Village Board members a little more than a year ago.

It had been about six months since they had signed a sales contract to purchase the Hotel Lenhart. As they worked on financing, the Currys were also working to finance the big plans they had for the historic Bemus Point hotel.

“We’re excited about the project,” Curry told board members. “Everybody seems to be excited that we’re doing it, which is refreshing.”

Excitement turned into exasperation in a little more than a year. By last spring the Johnston family, whose family started and ran the Hotel Lenhart for its entire 142-year history, were still waiting to close the deal. They eventually reached the point of giving the Currys a 30-day “time is of the essence” closing date or otherwise declare the sale null and void.

Last week, exasperation turned into acrimony, as both the Johnston family and the Currys filed lawsuits against each other over the sale of the Lenhart. One of the pieces of evidence the Johnston family included in its court filing shows how excitement turned into acrimony in a less than 24 months time.

THE LETTER

After two letters from the Johnston family’s attorney asking for an update on the Currys’ efforts to secure mortgage financing for the $3.5 million sale, attorney R. Shane Uber responded with a 5-page letter that showed just how hard it has been to close the sale and begin renovation work on the Hotel Lenhart.

The Hotel Lenhart project has received a $1.9 million commitment from the state to help with renovations costs while the county IDA has approved a $500,000 loan for equipment and working capital. County IDA board members also started the process to give the Currys a 15-year Payment In Lieu Of Taxes agreement for sales and mortgage tax exemption and property tax abatement. They are eligible as a “tourism destination” business.

But all of the outside help is contingent on closing the sale. Initially the Currys tried working with M&T Bank, submitting its initial application on Aug. 16, 2022. The bank requested a feasibility study that cost the Currys $20,000, which they paid out of pocket, and initial environmental opinions on the site.

M&T, according to Uber’s letter, said the bank considered a $9.9 million financing package for the total Hotel Lenhart project, a total that included the sale costs. In addition to the studies, M&T officials said additional funders and outside grants would be needed. An offer was supposed to be made in late January 2023, but the offer never came.

Another inquiry led M&T to add additional loan requirements to its package to lessen the bank’s risk “based upon multiple market actors in conjunction with the condition of the property,” according to Uber’s letter. One of those conditions was not allowing Curry to self-manage the construction project, an addition the Currys said would add another $1.5 million to the project cost – an addition that was enough to make the project unfeasible.

At that point, the Currys turned to other lenders, but found other banks didn’t want to lend to the project given the current state of the Hotel Lenhart and the local economy. Cattaraugus County Bank declined to finance the project while Erie Bank and Community Bank had the money available, but said the status of the economy made a mortgage an unwise investment. Both banks would only finance flag hotels. Lenders also wanted additional grant commitments from the state and county to minimize the bank’s risk, but state grants only pay out when a project is completed.

“Nevertheless, there is no lender that is willing to finance this transaction as it currently stands,” the Currys’ lawyer wrote in the June 8, 2023, letter. “As we get further and further into the summer, I anticipate that it will be more difficult to finance the sale of this building due to the deteriorating condition and the lack of additional financial information available to support the valuation of the business, real property and business assets as a result of the Lenhart being closed for the 2023 season.”

A STORIED HISTORY

The history of the Hotel Lenhart dates back to 1880 and its construction by Dr. J.J. Lenhart and his wife. As noted in an Aug. 17, 1963, article in The Post-Journal, debts incurred in construction of the hotel had just been paid off when, on Oct. 9, 1891, the structure was destroyed by fire. The current building was constructed in 1892, opening that season as the Lenhart House.

Dr. Lenhart’s wife, Dora, managed the hotel after his death. When she died in 1934, their daughter, Charlotte Johnston, took over its management. In June 1941, another fire damaged the roof and fourth floor of the property.

George and John Johnston took over management in 1968.

In 1980, the hotel celebrated its 100th anniversary. Then-owner John Johnston told The Post-Journal in a September 1979 story on the upcoming celebration that many of the features and amenities that made the hotel great had been kept in place.

The story notes: “All of the registers back to 1881 have been kept. Names of people from Cincinnati, Philadelphia, and Buffalo are written in the huge books with a quill pen script. John said that back then many of the visitors took trains to Jamestown or Mayville and then rode a steamer to Bemus Point. At that time, many people stayed all summer.”

Among the hotel’s many notable features is its veranda that stretches the width of the property. Colorful rocking chairs also provide a comfortable view of the water.

From the veranda, the newspaper noted in 1979, “guests have seen great steamboats chug past and women stroll by with long skirts swishing over the grass, escorted by coat-clad men in straw hats.”

As noted on its website, the Hotel Lenhart has a main floor and three sleeping floors totaling 53 rooms. The hotel was originally built without plumbing or electricity.

AN UNCERTAIN FUTURE

The Hotel Lenhart was closed in the summer of 2023 while the behind-the-scenes drama played out. While the Johnstons’ told The Post-Journal last year they had no interest in reopening the hotel, the Currys say the hotel’s current state is one factor in the struggles to get bank financing. The town of Ellery, they say, doesn’t want to provide an official statement on occupancy for the Hotel Lenhart to receive occupancy licenses.

“It should be further noted that the Lenhart as it currently stands as it relates to the condition of the real property and business assets does not have the value to support any type of financing and is currently not mortgageable,” Uber wrote. “I anticipate that any subsequent purchaser would have to complete significant renovations just to receive applicable licensing and certificates of occupancy.”

The Johnstons disagreed with the Currys’ assessment of the Lenhart’s condition, noting the Johnstons weren’t aware of any building code violations that would have kept the hotel from opening last summer.

A for sale sign sits outside the Hotel Lenhart. But the Currys’ attorney said in his May 2023 letter that other buyers will likely face the same issues.

“However, I anticipate that any subsequent transaction would likely experience the same issues that the Currys have encountered as stated above,” Uber wrote in his letter.