New company to manage condo during civil case
ELKHORN A new management company was formally appointed Wednesday to manage the Cove Condominium property as a civil case against the Lake Geneva hotel continues in Walworth County Court.
Judge John Race formally granted a motion to appoint Inn Development Management, a Madison hotel and resort management firm, to operate Cove Condominium while the properties are in receivership, IDM has been managing the property since Nov. 14 when Race removed Geneva Hospitality, which had managed the property for the past 10 years.
The case was continued until 2:30 p.m. Friday, Jan. 18, to hear a contempt motion and conduct a scheduling conference.
Race placed Cove Condominiums in receivership Sept. 27 because of questions about unpaid bills, mortgage payments and placement of funds. A $1.9 million loan from PNC Bank is in default despite payments by condominium owners to the condo association.
At the time receivership was approved, a spokesperson for the association denied any defaults on payments to the bank.
The Cove is a 223-unit, four story condominium hotel at 111 Center St., Lake Geneva. It commands a priority location a block off Wrigley Drive overlooking Geneva Lake near Big Foot Beach State Park.
On Wednesday, an attorney representing unit owners told Race that owners approved of IDM's management of the property. Attorneys for the bank and the receiver also had no objection to IDM's management.
Sean Skellie, who said he was a principal of IDM, testified Wednesday that IDM has experience managing similar properties. He said IDM manages a similar 133-unit hotel in Milwaukee and also manages the Beloit Inn, a 40-unit property in Beloit.
"We are skilled at working with owners," he said. "I personally contact owners when there are any issues."
Race was assured by attorneys representing the unit owners, receiver and bank that all funds would be deposited in a condo association account and that IDM would be responsible for rentals, marketing, financial reporting and upkeep and maintenance of the property.
Skellie said IDM is already marketing units on the property for the spring and summer season.