Bidders left hanging as York Beach Surf Club foreclosure auction pushed back
Camille Fine
YORK, Maine — A foreclosure auction that was set to take place Thursday, Oct. 14, for the newly renovated York Beach Surf Club was postponed at the last minute.
Auctioneer Stef Keenan said attorneys for Kennebunk Savings Bank contacted him the day before the auction to tell him it would be delayed until next month.
Keenan said he emailed the 150 people who had expressed interest in the property, to notify them of the change, but several who hadn’t seen his message showed up Thursday morning at the Surf Club expecting an opportunity to place a bid. One person had driven from Virginia to be there, he said.
Keenan said he formally announced the postponement to the group of prospective buyers who assembled at the time the auction was originally scheduled. The new date is Friday, Nov. 12, at 11 a.m.
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The bank called for postponement
Keenan said he doesn't know details on why the auction was postponed.
An attorney for Kennebunk Savings Bank, Christopher Brooks of Drummond Woodsum, said Thursday the bank initiated the postponement. He declined to comment on the bank's reasons.
Taylor Perkins, the hotelier who has overseen the York Beach Surf Club renovations and rebranding, did not immediately respond Thursday to a request for comment about the auction being postponed.
When he spoke in September about the upcoming auction, Perkins acknowledged some of the challenges his teams have encountered but said the situation "will resolve in due time."
Perkins is a member manager of York Beach Surf Club LLC, which bought the York Harbor Motel and Cottages for nearly $3.6 million in 2020 and embarked on major renovation and rebranding projects for the 54-unit boutique hotel complex at 780 York Street.
With three outstanding loans, the LLC owes about $6.2 million to Kennebunk Savings Bank, according to court documents. That doesn't include accrued collection costs, penalties, late fees or default interest. The LLC defaulted on all three loans less than a year after it purchased the property.
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In addition to undergoing interior and exterior renovations, the main hotel building was lifted nearly 9 feet in the air while its foundation was completely rebuilt in January.
Renovations ongoing with plans to open
Perkins has said the target was to get the hotel open by spring 2021, but issues related to the COVID-19 pandemic caused multiple order cancelations and delays from vendors for food, materials and other supplies. At one point, the hotel was slated to open July 4 and began booking reservations, but the opening was delayed. The website now states York Beach Surf Club will open in fall 2021.
Keenan said renovations are ongoing but nearly finished. When and if the auction occurs next month, renovations will be complete, he added.
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In addition to the outstanding loans, the company has faced complaints from contractors, employees and would-be customers who said it was slow to pay them money they were owed.
When presented with questions Sept. 21 about the various allegations, Perkins declined to comment.
The property went into receivership on May 7, meaning that a receiver would be taking over the renovation project and all the assets after the lender served the LLC with a notice of default on his loans, according to court records. The company and the bank entered a forbearance agreement on May 25, and the bank served a notice of default on June 15.
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The receiver, BCM Advisory Group, was authorized to take immediate possession of York Beach Surf Club and full control of the project assets, according to court records. In order to sell any portion of the project assets, a receiver must obtain an order of approval by the court, after notice and a hearing, and the lender must provide written consent to any sale.
In addition to Taylor Perkins, the defendants in the foreclosure proceeding are York Beach Surf Club LLC, Carlton Street Holdings LLC, and The L.F. Perkins Family Tennessee Investment Services Trust.