Red Liion owners request liquidation

|tab|

Hotel Partners II, which operates the Red Lion Inn South at 3370 E. Battlefield Road, has asked the United States Bank-ruptcy Court in Kansas City for permission to hire an auctioneer for the property to liquidate its assets.|ret||ret||tab|

Forty-two percent of Hotel Partners II, a Kansas general partnership, is owned by Dean R. and Marilyn B. Lessley of Springfield. |ret||ret||tab|

The partnership voluntarily filed for Chapter 11 business reorganization Jan. 23 in the Western District of Missouri, according to court records.|ret||ret||tab|

On March 6, the partnership's local attorney, David E. Schroe-der, filed a motion requesting the court to approve the em-ployment of Sheldon Good & Company Auctions LLC as auctioneer and for permission to enter into an exclusive real estate auction agreement with the company to sell the property. |ret||ret||tab|

Sheldon Good has headquarters in Chicago, and since 1965 has sold $8 billion in property, representing 37,000 sales, in-cluding the Trump Plaza of the Palm Beaches in Florida. |ret||ret||tab|

Other members of Hotel Partners II, according to the business entity filing with the Missouri Secretary of State, are Frank E. Emery, of Springfield; Control Line Inc., of St Louis; Norris D. Blair, of Wichita, Kan.; Glenna J. Weiland, of Fredericktown; Steven A. Nien-ke, of Peck, Kan., and George Lessley and Shelia Allison of Media, Penn.|ret||ret||tab|

The Red Lion South assets consist of a 121-room motel with 54,863 gross square feet, including a business center, fitness room, guest laundry, outdoor heated pool and an asphalt parking lot. The sale also will include all the fixtures and furnishings of the motel.|ret||ret||tab|

The 3.17-acre property, which fronts Battlefield Road, is also visible from the Highway 65 Bypass.|ret||ret||tab|

According to Schroeder's motion, the partnership has "conferred with its major se-cured creditors and intends to file a plan of liquidation following the implementation of a national auction market plan for the auction sale ..."|ret||ret||tab|

Under the terms of the auction agreement, which must be approved by the court, a 5 percent buyer's premium will be charged to the buyer based on the high bid price. The partnership will retain the premium.|ret||ret||tab|

The auctioneer company's commission would be 6 percent of the first $4 million, 5 percent of the next $4 million and 4 percent of the remaining gross sale price. |ret||ret||tab|

If the property is sold with a cooperating broker, an extra 1 percent will be added to the commission structure, the motion said.|ret||ret||tab|

Good requests $35,000 in advance for the hard costs of the marketing plan for advertising, direct mail, public relations, media exposure, sales promotion and auction events. |ret||ret||tab|

The partnership has arranged through some of its equity holders for the ad-vance funding of the hard costs, the motion said.|ret||ret||tab|

If the motion is approved, the project sales person will be Brian L. Kearney, a licensed Missouri broker. [[In-content Ad]]