City plans action against Holbrooke for back taxes |

City plans action against Holbrooke for back taxes

The Holbrooke Hotel owes the city of Grass Valley more than $41,000 in back taxes and overdue sewer and water charges, according to a letter sent to the hotel from Mayor Lisa Swarthout last week.

The city entered into a contract with the hotel’s owners in early March to pay back the unpaid transient occupancy tax and sewer and water charges, according to the letter.

Ownership of the Holbrooke failed to adhere to the payment plan, leaving an outstanding sewer and water balance of $4,878.71 owed to the city, and an outstanding transient occupancy tax of $36,7575.55.

If the Holbrooke’s owners did not repay the balance in full by yesterday, city staff planned to file a lien against the Grass Valley landmark today for the full amount.

Shortly after 9 a.m. no lien had been filed at the Nevada County Clerk-Recorder’s office.

The Holbrooke’s owners are in trouble financially and in default on a $1.2 million mortgage from Citizen’s Bank. An auction of the historic inn is planned by the bank for 12:30 p.m. Thursday, Sept. 9, on the steps of the Nevada County Superior Court in Nevada City. An auction planned for Monday, Aug. 23 was delayed for owners to try to sell the hotel, built in 1851 and billed as the “home of the oldest (almost) continuously operating saloon west of the Mississippi.”

Owners are asking $1.4 million for the landmark, down from an asking price of $4.4 million in 2008.

For more details on this story, check tomorrow’s print edition of The Union.

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