Developers of proposed State Street hotel face foreclosure

Park Bank is seeking to foreclose on mortgages related to the planned development of a nine-story boutique hotel on State Street, putting the project in jeopardy.

According to an article in The Capital Times, developers have missed mortgage payments on properties acquired for the proposed $43 million project, prompting Park Bank to file a lawsuit in Dane County Circuit Court seeking a foreclosure and money judgment against the developer, Ascendant Holdings of Madison.

Ascendant Holdings continues to seek financing for the project, which already has been delayed for a year.

The lawsuit claims the defendants failed to make payments on two loans totaling $4.5 million and also failed to winterize and secure the property.