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Topeka development board approves sale of Hotel Topeka, schedules July 14 closing
Summary
The Topeka Development Corporation voted 9–0 July 7 to authorize the sale of Hotel Topeka to a private Endeavor-linked buyer, setting a July 14 closing on a $1,000,000 purchase price. Project manager Copley said most hotel employees are expected to be offered jobs by the buyer and the city is pursuing tax refunds tied to a recent BOTA ruling.
The Topeka Development Corporation on July 7 unanimously approved a resolution authorizing the sale of Hotel Topeka to an Endeavor-linked entity, setting a closing date of July 14 and directing staff to execute closing documents, project manager Copley said.
Project manager Copley said the sales price is "1000000 dollars" and that city and buyer teams have held weekly calls to finalize closing details, including an on-site inventory and guest transition plan. "We are scheduled to close 1 week from today on the on the 14th," Copley said during the meeting.
The resolution authorizes the board president and the executive director to sign the deed, a sales-tax-validation questionnaire and other closing documents. Director Hofer moved to approve the corporate resolution; a committee member seconded. The clerk called the roll and the board recorded nine yes votes; the motion carried.
Copley told the board the city recently secured a tax-exemption ruling from the Board of Tax Appeals. He said that, because the city held the property as tax-exempt while it owned the hotel, the city is seeking a refund of about $260,000 in real property taxes paid under city ownership. Copley also noted that the buyer plans roughly $6,000,000 in improvements and that taxes on that work at a stated 9% rate would equal roughly $540,000.
Board members pressed staff for operational and financial details. Director Hillers asked whether hotel staff would carry through under the buyer; Copley said "the vast majority of the employees will be offered employment with the Endeavor Group" and that offers would be sent to employees' personal email addresses in the days ahead.
Director Hofer asked when the city's management contract with GF Hotels would end. Copley said the contract was extended and is now scheduled to terminate on July 14, and that the city expects to pay a contract termination fee. He said full settlement of hotel accounts (insurance refunds, payroll accruals and related reconciliations) could take 60–90 days, with the city expecting most items to be settled by the end of October.
Copley also said the county-management agreement for the Manor Conference Center is a separate matter and is not a condition of the hotel sale.
No members of the public signed up for comment. With no further business, the board president adjourned the meeting.
Next steps: the president and executive director will sign agreed closing documents to be held in escrow pending the July 14 closing; staff will pursue tax- and insurance-related refunds and finalize employee transition details.
