Gem Hotel (formerly The Falls)

[Pete]

I don't know but that's a major bummer because it means the facility will see little life other than evenings and not have an open-to-the-general-public element.

[kevinpate]

Maybe they could pitch the space to firehouse subs.
Never eaten one, but my son in Mobile swears they make some fine sandwiches.

[GoldFire]

Are they going to try to find an alternate tenant or just leave the space empty/integrate it with the event space?

[catch22]

I don't blame them. Basement (canal) level for a quick serve sandwich shop isn't probably the best idea. Part of quick serve sandwich shops main clientele are workers/businessmen with a short lunch break. It needs to be at street level.

[TU 'cane]

I don't blame them. Basement (canal) level for a quick serve sandwich shop isn't probably the best idea. Part of quick serve sandwich shops main clientele are workers/businessmen with a short lunch break. It needs to be at street level.

Yea, and I can see this as being lesser of an issue when the Santa Fe station overhaul is completed, opening up additional avenues for access between the canal and street/CBD.

[Pete]

$2.1MM sale closed today.

[Pete]

Nothing happening yet but really looking forward to this project as it's highly visible,

[Pete]

Sign is up on the property.

[Jeepnokc]

Looks like there may be some issues.

http://newsok.com/falls-event-center...rticle/5577393

[BLJR]

Looks like there may be some issues.

http://newsok.com/falls-event-center...rticle/5577393

Well, thats a bummer. Based on that reading, this thing is going to be parked at the terminal somewhere between long term to indefinite.....

[Pete]

I suspect they will end up selling this property, hopefully sooner rather than later.

[Pete]

They have completely withdrawn their Bricktown design review application.

I'd be very surprised if they don't put this property on the market sometime soon.

[T. Jamison]

It looks as though it is already listed.

[Pete]

It looks as though it is already listed.

Yep.

Bought 1/6/17 for $2,150,000; now listed for $2.576,948 (that's a very precise #!).

[kswright29]

Margarita Mama's lives on!!! It will never die!

[T. Jamison]

The seller carried the mortgage on the property, and is now foreclosing. If Cotton Investment Co. buys it back from the Sheriff sale for the judgement amount, they basically made $430,000 and are in the same boat as a year or so ago.

[Pete]

Key Bricktown building facing foreclosure

After bold plans by Falls Events Center seem to have fallen through, the building they purchased at 108 E. California on the Bricktown Canal has fallen into foreclosure.

The prominent building had been vacant for quite some time when the Utah-based event facility operator purchased it in early 2017 for $2.125 million.

The Falls then presented ambitious $10 million design plans to the Bricktown Urban Design Committee that stalled after commissioners balked at an elaborate waterfall planned for the canal level, then completely stopped as the company and its CEO found itself in legal troubles.

In March, the previous owner Gary Cotton filed a foreclosure action against The Falls for non-payment for the months of November, December and January. Court records show Cotton took back a $1.72 million promissory note when he sold the property.

The suit filed by Cotton is attempting to collect $1,708,072.68 and regain full ownership of the property he had first purchased in 2004.

In December, Falls general manager John Neubaurer told the Oklahoman that the Oklahoma City project was on hold but that he expected “to be in a position where we can get back up and start up all projects”.

However, at the time of that interview The Falls had already missed 2 mortgage payments and proceeded to miss the next several owed to Cotton.

Also, the Bricktown property is currently listed for sale for $2.577 million by a Utah broker who is also attempting to sell at least 10 other properties owned by The Falls.

Meanwhile, the legal troubles for The Falls and their CEO Steve Down continue, with reports of missed payments at other businesses while Downs continues to defend allegations about various business dealings which include SEC investigations and claims of Ponzi schemes.

[David]

Event center CEO facing SEC charges of fraud following collapse of Bricktown project

Steven Down, a Utah entrepreneur who once planned to develop a $10 million event center along the Bricktown Canal, is being hit with federal charges that he defrauded dozens of dentists who invested millions on the false premise that his business was profitable.

[ourulz2000]

Considering the Feds win 99% of cases, this guy is toast.

[Pete]

They were lying to the Oklahoman last year.

Saying 'all is well; we'll still move forward' but had already stopped making payments for the Bricktown and now have 10 or so Falls properties up for sale.

[pw405]

They were lying to the Oklahoman last year.

Saying 'all is well; we'll still move forward' but had already stopped making payments for the Bricktown and now have 10 or so Falls properties up for sale.

Any ballpark guess as to how long this building could be tied up while the case is settled? Seems like this place is cursed. You'd think it would be in high demand due to the location, but seems as if the opposite is true.

[Pete]

Securities and Exchange Commission v. The Falls Event Center, LLC and Steven L. Down, No. 2:18-cv-00382 (D. Utah, May 10, 2018)

On May 10, 2018, the Securities and Exchange Commission filed a complaint in the U.S. District Court for the District of Utah against The Falls Event Center, LLC (The Falls), a Utah limited liability company, and its CEO Steven L. Down of West Jordan, Utah (Down) for making material misrepresentations to investors concerning the profitability of certain of The Falls' event centers.

As alleged in the SEC's complaint, The Falls builds and operates small event centers. Since 2011, The Falls and Down raised approximately $120 million from more than 300 investors from the offer and sale of, among other things, convertible secured promissory notes. According to the complaint, Down solicited investments in The Falls by making presentations to groups of professionals during continuing education seminars that he sponsored. In his presentations, Down represented that some or all of the event centers were and continued to be profitable. The complaint alleges that certain of these representations to investors were untrue.

According to the complaint, from the first half of 2016 forward, members of The Falls' executive team informed Down that the event centers were not profitable. In addition, they informed Down that his event center model was unsustainable because of the millions of dollars owed to investors and to the event center mortgage holders.

In addition, The Falls' own accounting records, which Down received regularly from the Falls' CFO, indicate that, from inception through September 2017, the event centers were never profitable.

Without admitting or denying the SEC's allegations, The Falls and Down have consented to the entry of a final judgment permanently enjoining them from future violations of Sections 17(a)(2) of the Securities Act of 1933. Down has also agreed to pay a civil penalty of $150,000.

The SEC's investigation was conducted by Scott Frost, Alison Okinaka and Cheryl Mori of the Salt Lake Regional Office, and the litigation will be led by Amy Oliver and Daniel Wadley.

[Pete]

Gary Cotton has filed for final judgment in his foreclosure effort against The Falls.

The company has not bothered to respond the foreclosure petition filed in April, and if they don't respond to the latest filing, the court will likely return the property to Cotton, who sold it to The Falls but carried the mortgage.

[okatty]

This is on the foreclosure docket for 10-19. Appraised at $1.9M. 2017 property tax of about $22K is unpaid as well.

[Pete]

7-story boutique hotel planned for Bricktown Canal

Plans have been submitted to add a 5-story addition atop a historic structure at 108 E. California along the Bricktown Canal.

[prbreak][/prbreak]

The building has been vacant for years and was recently taken back by the owner Gary Cotton after ambitious plans for an event center collapsed.

The latest plans call for a boutique hotel with a rooftop pool partially cantilevered towards the canal and offering panoramic skyline views. Adjacent to the infinity pool would be cabanas and a bar and lounge.

There would also be a spa, cafe/juice bar and patio at canal level, a bar and lounge on the main level, and a 1,000 square foot presidential suite on the top floor.

There would be a total of 60 rooms.