City of Topeka confirms bidding on Hotel Topeka

TOPEKA, Kan. (WIBW) - The online auction for Hotel Topeka is officially underway. The city confirms it is bidding.

Topeka City Manager Steve Wade says city leaders knew in early April that Hotel Topeka would go to auction and knew they needed to take action.

“We’ve looked at it. We know that the risks of the hotel falling into the hands of somebody who’s not interested in investing into it and taking care of it really does damage our tourism business,” says Topeka City Manager, Steve Wade.

Speaking Monday on Eye On Northeast Kansas, Wade said the hotel has fallen into disrepair.

“We are aware that some local groups are not coming to Topeka for their conventions and we hate to see those go to other communities. We’d like to have them back and this is a way to get them,” says Wade.

The city says they started negotiations ahead of the auction.

With no agreement reached, the auction through the group Ten-X started Monday morning with an opening bid of $2 million, but the auction site shows the reserve is not met.

Wade says the city has yet to determine how high they’ll go.

“It wouldn’t do us any good to say what that upper limit was given the fact that it is an auction but we’re being very careful with taxpayer money. We’ve looked at it closely and we think that we know what makes sense and we’re going to make sure that we stay at or below that threshold,” says Wade.

He said the hotel will be paid through bonds, but he doesn’t think taxpayers are at risk.

“If you go into a lease back type of operation which is certainly one of the things that we would like to see then the taxpayers are refunded that money. We don’t intend to buy a hotel and then hold it for long, really the goal is to get into the right hands,” says Wade.

Hands that will bring the property back to its former standard.

“It’s not something that somebody can buy cheap and not put any more money into. It is going to require somebody that has a dedicated interest in making it the right place,” says Wade.

To see auction details and to bid on Hotel Topeka click here.

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