The corporation that just opened the $65 million, 202-room Hotel Monaco inside Baltimore's historic B&O Building is in danger of losing the property at a public auction next month for not paying a Millersville lumber supplier $184,000 for doors, wood trim and other materials used in the project.
A Baltimore circuit judge issued a final order this month establishing a mechanic's lien and directing the sale to move forward on the premises unless the building owner pays the J.F. Johnson Lumber Co. $184,000 plus interest and attorneys' fees by Aug. 31.
Johnson had sued Baltimore and Charles Associates LLC, owner of the building at 2 N. Charles St., and general contractor James M. Jost & Co. of Columbia, claiming it is owed more than $230,000 for lumber products used in the construction.
The order, by Judge Evelyn Omega Cannon, clears the way for an auction to be held to satisfy the complaint, according to Johnson's attorney, Michael Darrow of Hillman, Brown & Darrow P.A. of Annapolis. Darrow, who specializes in mechanic's liens, said he is prepared to proceed with an auction by mid-September.
Robert Ferguson of Ferguson, Schetelich and Ballew P.A. in Baltimore, the attorney for Baltimore and Charles Associates, said his clients intend to appeal the judge's decision and post a bond. Such an action would result in cancellation of the auction.
Ferguson said he has not filed an appeal of Cannon's decision, but he has 30 days from the date of her Aug. 5 ruling to do so. "We disagree with the judge's ruling and we're going to take that up with the appellate court," Ferguson said.
If an appeal is filed and the auction is canceled, the case would be heard in Maryland's Court of Special Appeals. In the meantime, the Hotel Monaco Baltimore remains open for business. The 13-story building also has a two-level restaurant called the B&O American Brasserie and several floors of office space that remain open.
The judge's decision came less than a week after the hotel's opening July 30. Kimpton Hotels & Restaurants of San Francisco is managing the hotel. ARC Wheeler, a Philadelphia-based developer, has controlling interest in Baltimore and Charles Associates, the entity listed in state land records as the property's owner. The building opened in 1906 as headquarters for the Baltimore & Ohio Railroad.
