For the second time in as many months, parts of the Greenbrier Hotel will be put up for public auction, according to one legal advertising was published Thursday in Lewisburg’s West Virginia Daily News first reported from MetroNews.
According to a statement from Steve Ruby, attorney for the Greenbrier Hotel Corporation, the announcement of the auction — scheduled for Oct. 25 at 2 p.m. on the steps of the Greenbrier County Courthouse — “is purely a procedural matter.”
“As The Greenbrier previously announced, its agreement with Beltway Capital calls for final payment by October 24, 2024. The Greenbrier remains on track to make this payment,” Ruby wrote in the statement. “Today’s complaint is purely a procedural matter. It in no way reflects a change in the parties’ relationship or The Greenbrier’s payment plans.”
The payment to be made is the product of a deal that was cut in August between Beltway Capital, which is affiliated with debt collection firm McCormick 101, which purchased the hotel’s loan documents and deed of trust from JPMorgan earlier this year, and Gov. Jim Justice’s family, which owns the Greenbrier.
According to previous testimony, the judges defaulted on at least $9.4 million in loans from the bank that were used to buy the Greenbrier out of bankruptcy in 2009.
This deal averted that first public auction announced for parts of the resort in a separate legal advertising on August 1st. This auction was announced on August 22nd wouldn’t happen and that the Justice family would make an unspecified payment to Beltway on Oct. 24 to avoid foreclosure.
No details have been released yet about how much the governor’s family will pay to maintain the hotel. In statements at the time, Justice said the payment would be made directly by the family and that the undisclosed amount of money had already been raised.
“Ultimately, we received these funds,” Justice told reporters at a news conference at the time. “It’s going to cost our family a lot of money.”
According to the novel announcement, it is unlikely that the portions of the resort offered for public auction will actually be for sale if payment is made on October 24th. The portions in question include 60.5 acres of the resort, most of which consists of the hotel and its parking lots. Other properties on the property — golf courses, tennis courts and more — are owned by other Greenbrier-affiliated companies under the governor’s family and are not facing foreclosure.
However, if payment is not made, the property could be sold for cash to the highest bidder on October 25th. That sale would come just over a week before the general election, in which Justice is running as a Republican. The U.S. Senate seat is currently held by Sen. Joe Manchin, IW.Va. Justice is a bulky favorite to win against his Democratic opponent Glenn Elliott, the former mayor of Wheeling.
The uncertainty over the fate of the Greenbrier has been frustrating for those who live in surrounding communities and rely on the resort, which employs between 1,500 and 2,000 people in the area.
Kara Dense, president and CEO of the Greenbrier County Convention & Visitors Bureau, said in August that the Greenbrier was a “big part” of the county’s tourism success, especially during the pandemic. According to the state Annual Tourism Impact StudyIn 2022, tourists spent approximately $382 million in Greenbrier County, the fifth-highest total of any county in West Virginia.
Residents and business owners there were clear They want responsible owners to run the hotel, no matter who that may be, and the ongoing questions about whether the Justice family has the ability to take care of the hotel financially are disheartening given what is at risk.
“This county and this state needs The Greenbrier and needs The Greenbrier to be in top operating shape…,” Cathy Rennard, president and CEO of Lewisburg’s Carnegie Hall, told West Virginia Watch in August. “I hope we can get back there one way or another. It would be great if another hotelier came along and solved the problem. If the Justice family gets through this difficult situation and comes out the other side investing back into the property and so on, that’s great too. We just need good, solid ownership.”
