Delayed Speedway hotel project now faces foreclosure
INDIANAPOLIS (WISH) — The long-delayed plan for a renovated hotel in the heart of Speedway faces a new hurdle: foreclosure.
The mortgage holder for the Wilshaw Hotel project filed a foreclosure lawsuit Thursday in a Marion County court.
The suit claimed the developer owes more than $7.6 million on a loan for the project.
Indianapolis Mortgage Holder I, LLC, which holds the mortgage, said it notified the developer of the default in January.
Plans approved by the town called for a five-story, 127-room hotel under the Hilton brand at the intersection of 16th and Main streets.
The new hotel would essentially sit in the shadow of the Indianapolis Motor Speedway.
In a statement Friday, Speedway town officials said they would not move forward with a short-term loan to assist the project, citing “current market conditions and the pending legal action.”
Town leaders said they would also consider legal action to protect Speedway’s interests.
“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,” the town statement said.
No court date has been set in the foreclosure proceeding.
