SCHENECTADY Van Dyck headed back to auction Chapter 11 status had stalled action BY MICHAEL LAMENDOLA Gazette Reporter Reach Gazette reporter Michael Lamendola at 395-3114 or lamend@dailygazette.com
The Van Dyck Restaurant & Brewery is going back on the auction block, following a victory last week by creditors to remove the business from Chapter 11 protection. Ray Gillen, chairman of the Metroplex Development Authority, one of the creditors, said Monday the auction will proceed as soon as possible. “We hope to have a new auction date fairly quickly,” Gillen said. Metroplex and Berkshire Bank, the other main creditor, filed motions in federal bankruptcy court against Van Dyck owner N. Peter Olsen. Olsen filed in July for Chapter 11 reorganization, the day his business was scheduled to be auctioned, under the name Electric City Brew Pubs. His motion stayed the auction at the time. Metroplex and Berkshire filed motions to lift the stay brought by Olsen’s filing, said attorney Mike Basil, representing Metroplex. Basil said Olsen still has the option to delay the auction by filing a more specific bankruptcy plan. He said the plan Olsen filed in July “had a lot of generalities. The judge wanted to see more specifi cs in terms of financing and in terms of specific proposals.” Olsen defaulted on a $250,000 loan from Berkshire and a $200,000 loan and $75,000 line of credit from the Metroplex Development Authority in early 2007. Olsen did not return a phone call for comment on Monday. Bankruptcy referee Roland Faulkner learned of the auction Monday and had no comment. In prior interviews, he said the auction would include the building at 235-237 Union St. and a parking lot a block away as one parcel. Berkshire Bank, which initiated the foreclosure last year, will set the minimum auction price, he said. Both Berkshire and Metroplex expect to recoup the amounts owed them, Gillen said, adding the properties have values worth at least $1.1 million. Metroplex owns the Van Dyck name, acquired as collateral for the loan it gave Olsen in 2005. Gillen said Metroplex is willing to negotiate the use of the name with the new owner. Metroplex signed a 10-year lease agreement worth $100,000 with Olsen in 2005 to use the parking lot. Metroplex would lose control of the parking lot through the auction. Metroplex does not expect to recover the $100,000, Gillen said. Olsen shut down the former jazz club in March 2007, saying he planned to close temporarily for repairs. He never reopened and shortly thereafter put the Van Dyck up for sale. He initially listed it at $1.6 million and is now seeking $1.48 million.
Amazing isn't it? it just goes to show you how much of this county the dictatorship controls!
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
Van Dyck to be auctioned Oct. 8 September 3, 2008 at 3:21 pm by Eric Anderson, Deputy business editor
The shuttered restaurant and brewery originally was to be auctioned July 3, but a Chapter 11 petition filed July 2 temporarily halted the foreclosure auction.
Owner N. Peter Olsen, who operated the Van Dyck under the corporate name Electric Brew Pubs Inc., owes $250,000 to the Schenectady Metroplex Development Authority and about the same amount to Berkshire Bank.
Both lenders had filed foreclosure actions on the restaurant, at 237 Union St. in Schenectady’s Stockade neighborhood.
Efforts to sell the business, listed for $1.6 million with Re/Max Premier Inc. in Delmar, haven’t been successful.
The auction includes the building and a parking lot a block away. Metroplex has a lien on the Van Dyck’s restaurant and brewing equipment, said Ray Gillen, the Metroplex chairman.
The Van Dyke Restaurant in Schenectady went on the auction block Wednesday morning and was sold for $252,000.
The former jazz club on Union Street had gone up for sale after then owner Peter Olsen defaulted on loans from both Metroplex and the Berkshire Bank adding up to nearly half a million dollars.
The McDonald family, who already owns Pinhead Susan's, the Stockade Inn and the Parker Inn, purchased the building and the parking lot.
The shuttered restaurant and brewery had been set to be auctioned on July 3rd, but Olsen got a stay of foreclosure after filing for corporate bankruptcy protection.
The property and its parking lot had been appraised at over a million dollars.
In that article, it says that the VanDyck had a $200,000 LOAN from Metroplex in 2005 ("two years ago" at that point) that was in default - and a $100,000 lease on the parking lot.
So, Gillen/Metroplex hope to recover more from the equiptment than they did from the sale of the building?
Something doesn't make sense here - and the taxpayers are losing out - again.
Should have bet the under. Always bet the under when Metrograft is involved. Only $252,000 for both the restaurant and parking lot!!!
Ray repeatedly stated that 1) many people were interested in the property. 2) that the property was worth over $1 MILLION and that the taxpayers $275,000 was secured. Wrong! WRONG!
Berkshire Bank (owed $250,000) will be satisfied. The County taxpayers (owed $275,000) will be screwed AGAIN. Now Ray is talking about worthless personal guarantees, that were terminated when the past owner filed Bankruptcy. Mass resignations should be forthcoming. Can't wait to hear the People's Gazette spin this into some kind of positive development.
Just imagine if you managed your house hold budget the way Metroplex manages the tax payers money, how long would it be b4 you went bankrupt?
Your house would be seized by the Government-and you'd be in jail. But these bozos win awards and get raises. Only in Schenectady County. You can't make this stuff up. Had enough....yet?
Should have bet the under. Always bet the under when Metrograft is involved. Only $252,000 for both the restaurant and parking lot!!!
Ray repeatedly stated that 1) many people were interested in the property. 2) that the property was worth over $1 MILLION and that the taxpayers $275,000 was secured. Wrong! WRONG!
Berkshire Bank (owed $250,000) will be satisfied. The County taxpayers (owed $275,000) will be screwed AGAIN. Now Ray is talking about worthless personal guarantees, that were terminated when the past owner filed Bankruptcy. Mass resignations should be forthcoming. Can't wait to hear the People's Gazette spin this into some kind of positive development.
Then metro-value happened to the property market, stock market, global markets etc......this is just and M&M lost by the taxpayers this will just be a mustard seed in things to come.......
Metroplex should just roll over now and save everyone the headache......something new WILL come later after the storm......
we always need fresh Shew Bread at the alter........after the storm.......
...you are a product of your environment, your environment is a product of your priorities, your priorities are a product of you......
The replacement of morality and conscience with law produces a deadly paradox.
STOP BEING GOOD DEMOCRATS---STOP BEING GOOD REPUBLICANS--START BEING GOOD AMERICANS
Van Dyck goes for $399,000 in morning foreclosure auction Wednesday, October 8, 2008 By Michael Lamendola (Contact) Gazette Reporter
SCHENECTADY — An established restaurant family purchased the landmark Van Dyck for $252,000, plus $147,000 in back taxes, at auction this morning. The famed former jazz club on Union Street had once been listed for sale at slightly less than $1 million. Today's sale satisfies most of a $250,000 loan owner N. Peter Olsen defaulted on with Berkshire Bank but leaves unpaid a $200,000 loan and $75,000 line of credit he defaulted on with the Metroplex Development Authority in early 2007. Metroplex Chairman Ray Gillen said Metroplex will auction off Van Dyck brewing equipment on Oct. 22, in the hopes of satisfying the defaulted loan. Metroplex will also go after assets owned by Olsen, Gillen said. “We have personal guarantees from the former owner. Metroplex will pursue payment under the guarantee until the debt is satisfied,” he said. The McDonald family, owners of Pinhead Susan’s, the Stockade Inn and Park Inn, purchased the Van Dyck property at 235 Union St. and a parking lot at 301 Union St. Metroplex lost its 10-year lease on the parking lot through the auction. It paid Olsen $100,000 to lease the lot in 2005.
"We have personal guarantees from the former owner" (who filed bankruptcy), stated Metrograft Ray. He will pursue remedies on the brewing equipment? Has this guy resigned in disgrace yet? How stupid does he think we are? Don't answer...
Logged
Should have bet the under. Always bet the under when Metrograft is involved. Only $252,000 for both the restaurant and parking lot!!! 
