The largest hotel in Cedar Rapids is in foreclosure. The 16-story Crowne Plaza Hotel in downtown Cedar Rapids has 275 rooms and is connected to the U.S. Cellular Center — the city’s main arena for concerts and other major events.
The hotel’s current owners, a Georgia company, are in default on loans and financial problems have been evident at the hotel for months — way before flood waters swamped the lower levels of the facility. In February, Linn County officials told the hotel to repair its roof and kitchen to address health concerns. Local officials say the hotel needs lots of renovations.
Employees’ paychecks have bounced; some waited in the lobby earlier this month, hoping to be paid in cash. The State of Iowa has placed a $400,000 lien on the hotel to cover unpaid payroll taxes. The hotel restaurant and pool are closed. Some guests at the hotel last night say there was no phone service in their rooms.
As a part of foreclosure proceedings, it’s likely a judge will appoint a receiver for the hotel and the lenders holding nearly 50-million dollars in loans on the property are recommending a Texas-based company serve as receiver, keeping the hotel open for business until the finances can be unraveled.