EASTON, MD. -- A real estate developer who wants to buy the Tidewater Inn says foreclosure proceedings likely will result if the deal falls through.
"Without local people getting involved in this deal, it will not happen and it will go into foreclosure," said Mark Smith, who wants to acquire the hotel and renovate it.
Doug Mitchell, the general partner of Tidewater Inn Associates, said other parties are interested in the inn and he still has an agreement with Smith and his associates.
The deal between Smith and Mitchell was to have been finalized by July 1. The closing date has been extended to Aug. 17.
Smith said Equitable Bank, which holds a note on the property, will foreclose on the inn if he and his partners do not buy it.
A spokesman for Equitable's foreclosure department in Baltimore said the inn was not included in this month's listings of available foreclosed properties.
Smith said he and his partners are able to raise the money to buy the hotel, but have not found a lender or a group of lenders willing to back the inn's renovations -- estimated to cost between $2 million and $2.5 million.
Smith said he has contacted the Maryland Industrial Development Financing Authority to discuss obtaining a loan or a bond issue for the restoration.
Curtis Kane, a spokesman for the authority, said an application has not been filed and a lender has not been identified.