This story by Chris Mays was published by the Brattleboro Reformer on July 24.
[W]ILMINGTON — The Hermitage Club was ordered to pay almost $1.2 million for missing rent and other payments associated with leasing the Vermont House at 15 West Main St.
LH VT House LLC and Lorista Holdings LLC filed a lawsuit in February against the Hermitage Inn Real Estate Holding Company LLC, Hermitage Inn LLC and Hermitage Club founder Jim Barnes. The parties had entered into a lease agreement in October 2014 that became effective in September 2014 and has since been terminated. Barnes personally guaranteed the lease, according to court documents.
In an affidavit, Lorista manager Nicholas Lombardi said the Hermitage failed to make “all minimum and additional operating costs,” which constitutes as a default under their agreement. His group is based out of Connecticut.
On July 5, Judge John Treadwell signed an order saying the Hermitage owes Lorista about $1,174,460 and 12 percent interest on the principal until it is paid in full. That figure includes $184,645 in rents that were never paid for leasing the hotel, about $18,664 in taxes, about $21,842 in flood insurance, $2,376 in building insurance, about $2,063 in water bills and about $4,384 in sewer bills. Also included is prejudgment interest on those items in the amount of about $10,077, late fees of 3 percent on past due rent adding up to about $5,539 and $2,327 in legal fees. Bills, taxes and insurance have been paid by Lorista.
Lombardi said all the rents of the long-term lease would become due if the Hermitage defaulted, meaning another $920,000 that was included in the judgment order. The Vermont House is listed for sale for about $1.4 million. It is described as “a swank new boutique hotel” on Meg Streeter Real Estate’s website.
“The original structure was taken down to its frame and completely rebuilt as an upscale lodging venue in 2013 and 2014,” the listing says. “Elegant finishes throughout the property include hardwood floors, fine linens, unique rustic-contemporary furniture, stainless steel appliances and stunning bathrooms with Carrara marble tiled showers, porcelain tile floors and high end bath fixtures.”
The hotel has 10 guest rooms, a luxury apartment on the top floor with two bedrooms, and a sitting room.
Lorista also owns the Professional Building and the former Poncho’s Wreck in downtown Wilmington. Both are up for sale, respectively listed at $79,000 and $129,900.