SPEEDWAY, Ind. — It’s become an eyesore for the town of Speedway, and now a foreclosure lawsuit is causing another delay.
The unfinished Wilshaw Hotel still sits on the corner of 16th and Main streets, right across from Gate 1 of the Indianapolis Motor Speedway.
All that remains are steel beams and a concrete structure.
“It’s been the same condition for a while now,” said Kevin Stipp. “It’s just kind of a determent to the Speedway Main Street here.”
Those in Speedway are worried, at this point, the project may never get done.
"It is disappointing that it isn't finished yet and that they haven't figured out what they wanted to do with it,” said Jessica Berry.
Since 2016, the town of Speedway has tried to bring a hotel to that area of Main Street.
The first developer tried, but lost financing. Then another company was brought in, but also struggled to secure funding.
Now, the second company is filing a foreclosure suit against the original developer, saying they owe more than $7 million, according to the complaint.
The town of Speedway is not included in the lawsuit, but did release a statement on Friday:
“The Town is carefully monitoring Indianapolis Mortgage Holder I, LLC’s (an affiliate of 33 Degrees and Hotel Equities) recent legal action to foreclose on the Wilshaw Hotel site, which is owned by Wilshaw Hotel LLC. The Town also is in communication with 33 Degrees regarding the foreclosure proceedings.
While 33 Degrees’ legal action is related to a transaction involving private entities, the site sits at an iconic intersection in the heart of our Town. We have a stake in what is ultimately developed there and are committed to being proactively involved in the outcome. Although the Town is not a party to 33 Degrees’ foreclosure action, we have not ruled out legal action to protect the Town’s interests.
Given current market conditions and the pending legal action, the Town is currently not moving forward with a short-term loan to Hotel Equities/33 Degrees. However, we may consider these types of economic development incentives in the future.
We hope that the foreclosure will be resolved quickly, allowing site redevelopment to continue. It’s our understanding from the court filing that 33 Degrees wants to take title to the hotel parcel of property with the current development obligations to the Town still in place, meaning the Town would need to approve any changes to those obligations.
The Town has been carefully evaluating its options to bring a resolution to this project that protects the Town and our citizens, and we will continue to evaluate any additional actions necessary as the situation unfolds.”