Longview's Historic Monticello Hotel To Remain Open Despite Bankruptcy

LONGVIEW - The historic Monticello Hotel, which was in danger of closing, has been given a reprieve.

The hotel will continue to operate because of an agreement worked out between McKenzie-Smith Investors of San Diego, the owners of the hotel, and National Collection Service, which holds the mortgage, said Larry Juell of National Collection.

McKenzie-Smith recently filed for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code.

Juell said he worked with Jeff Smith of McKenzie-Smith to reach a plan to keep the hotel open. Juell also said Smith may have a buyer for the hotel, which was Longview's first permanent building.

"We've elected to keep the restaurant and lounge open as a separate entity, and Mr. Smith is confident that he has a buyer, so we're working with Mr. Smith for the best interest of the Hotel Monticello," Juell said last week.

The week before last, Juell and NCS were near to foreclosing on the hotel at a sheriff's auction when McKenzie-Smith filed for bankruptcy protection. The future of the hotel and its employees and tenants was unclear because McKenzie-Smith did not submit a reorganization plan with its filing.

Although Smith is trying to sell the hotel, Juell said he will try to persuade the court to throw out McKenzie-Smith's petition and allow him to foreclose on the hotel.

The hotel was on the auction block because McKenzie-Smith failed to make $219,436 in payments on the mortgage originally held by First Interstate Bank.

NCS bought the primary mortgage on the hotel in March and began foreclosure proceedings against McKenzie-Smith with the goal of clearing up legal claims against the hotel and getting it ready for sale.

McKenzie-Smith has been trying to sell the hotel for at least two years, but lawsuits and tax liens made it difficult. The principal amount of the hotel's mortgage is $1.02 million.

The Monticello hotel was built in 1923 by Longview founder Robert Long. It was the center of civic and social life.