Kuhn Hotel property owner unsure of future

BELEN—Now that the Kuhn Hotel in Belen has been demolished, the owner of the property says his dreams of what could have been is no longer an option.

Dave and Julia Parton, owners of Stepping Stones Investment Properties, signed a real estate contract to purchase the property from Joan Artiaga for $300,000. He says he gave her $50,000 as a down payment.

The property is once again for sale, this time for $225,000, but Parton says he’s unsure if its worth that amount because it’s now an empty lot.

In June 2023, the Belen City Council approved a resolution to demolish the structures because of the dilapidated state and due to ongoing criminal activity. The city had given Stepping Stones additional time to come up with a plan to eventually renovate the hotel into an apartment complex.

The asbestos remediation began on Oct. 15, and the demolition began on Wednesday, Nov. 6. The city filed a lien against the property on Oct. 28 for $200,680, the cost the remediation and demolition.

“We fully anticipated we could turn the property around,” Parton said about the hotel.

He said his investors were very interested in the property, and estimated that if he was able to secure at least $500,000 the hotel could have been saved. But, because of the unknowns of the terreon brick that the hotel was made from, he couldn’t get a sound engineering report.

“Because we couldn’t secure our investor’s money, we decided it wasn’t the best thing to do,” Parton said. “We looked at demolishing and rebuilding ourselves, but the cost of rebuilding is so high.”

While he understands why city officials made the decision to demolish the hotel and three other buildings on the property, Parton is disappointed the city stopped communicating with him months ago.

In November, Belen Mayor Robert Noblin told the News-Bulletin, “I haven’t heard from the Partons, and I don’t think they’ve been in contact with the city.”

Noblin later clarified during a city council meeting he had not heard from the Partons, personally.

According to an email thread provided to the News-Bulletin, when Stepping Stones received an email from the city regarding notice of demolition, he told them the property was for sale and needed another extension.

“The hotel has been listed for sale for a short time now, and I am currently entertaining one cash buyer who owns a construction company and understands the implications ahead of such a purchase,” Parton wrote. “I don’t know that the city truly intends to spend taxpayer dollars on this endeavor, which will then cause a foreclosure on our company and harm Joan Artiaga. I honestly don’t even know how this move could be legal, but I leave that up to the city attorney.”

Parton said he did not receive a reply from the city.

“I have had missed calls from the city, but I have always returned them,” he said. “I have never missed an opportunity to speak with them or respond to their emails.”

When asked if he had ever went to city hall to speak with someone about the notice, he said he did not.

Parton says a local construction company was interested in purchasing the property, but he now insists it doesn’t make sense to sell because he has a $200,000 lien and isn’t able to pay Artiaga the remaining balance on the real estate contract.

A lien is a legal claim or security interest against a property that is used to secure a debt or obligation. Liens usually prevent the property from being sold until the debt is paid off. If the debt isn’t paid, the lien holder may be able to take possession of the property.

“We felt that this was a good business deal ... and we tried to work with the city to allow (our) business to turn this property around,” he added. “They (the city) has every legal right to do what they did. My dispute is that it might be legal but it’s bad business.”

Parton said he’s not sure how he’ll be able to pay lien, much less pay Artiaga the remainder of what he owes her.

He says it’s now a race to see who will be able to sell the property first. Parton says if he is able to sell the property, he might be able to pay the lien and give Artiaga something.

If the city sells the property first, Parton says, he will still have an outstanding debt.

“If they had waited and worked with me, who has invested hundreds of thousands of dollars in the city, I could have sold the property to a local person, who would have demolished it at a much lower rate and made the investment in Belen,” he said.

“A lien will be placed on the property for the costs of the demolition and the city will proceed to foreclose it and sell to the highest bidder,” the city wrote in an email informing Stepping Stones of the impending demolition. “You have ten days from Receival (sic) of this notice to bring the property into Conformance of City code or remove your personal belongings from the premises within the deadline provided to you if applicable. Failure to do so will result in the city moving forward and enacting completion of the resolution included.”

Parton says the city’s actions has taken away his ability to repay his debt to Artiaga, and may sell the property at a lower rate because the buildings are no longer there.

“(They’re) steam-rolling the people who love the city in order to do the right thing,” he said. “Should I pursue legal council? I don’t know because that’s not in my nature.

“I do believe the city has acted within their legal boundaries ... but I don’t have time to fight this legal battle.”

(Editor’s note: When the News-Bulletin tried to reach out to Dave Parton for comment for the last article published on Nov. 14, we did not have his correct telephone number.)