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Lender suspends hotel financing for Fishers developer

March 7, 2007

Home Federal Bank in Columbus has temporarily stopped financing a hotel that an arm of Fishers-based Dora Bros. Hospitality Corp. is building in the southern Indiana city.

 

The bank pulled back March 2 after Sears, Roebuck & Co. asked that a federal court give fast-track status to a lawsuit it filed Nov. 22, according to The Republic of Columbus.

 

Sears is suing the Dora business, called Vision Hotel Partners LLC, and The Commons Mall in downtown Columbus for restricting mall traffic with the construction. The giant retailer, which has the largest store in the mall, wants unspecified monetary damages and for construction to stop.

 

Vision Hotel is building Hotel Indigo and a nearby hotel, dubbed Candlewood Suites, in the mall. Vision has spent $1.15 million on Hotel Indigo and likely spent an additional $200,000 to $300,000 this month, the suit said.

 

The city encouraged the hotel projects to help revitalize the downtown.

Revenue for Sears and other mall tenants has slowed for years, and foot traffic is at an all-time low, the suit said.

 

The entire redevelopment project, which includes a parking garage, is expected to cost $121 million in public and private funds. Vision's part of the project will cost $9 million.

 

Construction on the Indigo continued Tuesday afternoon, the newspaper reported. Having started in August, the hotel is to be finished in September.

 

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