Hotel Niagara Has New Owner

January 6, 2011 Updated Jan 6, 2011 at 7:56 PM EDT

By Ed Reilly

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January 6, 2011 Updated Jan 6, 2011 at 7:56 PM EDT

(Niagara Falls, NY) . . . Built in 1925 and continuing through the 1980's, Hotel Niagara was one of Niagara Falls New York's premier hotels.

During the last three decades, ownership of the hotel changed hands several times and it fell into disrepair.

In 2008, it looked like the hotel would finally be restored to its old grandeur when Amidee Hotel Niagara, LLC started work on a multi-million dollar restoration.

But the Texas based development group ran into tough times when the economy took a nose dive.

When its parent company, Amidee Capital Group, filed for bankruptcy protection, work at Hotel Niagara came to a halt.

It also meant that Amidee Hotel Niagara LLC was unable to pay State Bank of Texas $3,277,803.61 for principle, interest, and past due fees.

A court ordered auction for Hotel Niagara took place Thursday in Niagara Falls City Hall.

While many people attended, including Buffalo developer and former NY gubernatorial candidate Carl Paladino, only one bid was offered.

Hotel Niagara's former mortgage holder, State Bank of Texas, offered one million dollars to purchase the property.

Attorney Franklin Heller from Damon Morey LLP in Buffalo represented State Bank of Texas.

"It is my understanding that the plaintiff will attempt to find someone to purchase the property. As I understand it, it {State Bank of Texas} is not in the business of developing hotel properties of this type and it {State Bank of Texas} will attempt to sell it," says attorney Heller.

Hotel Niagara is listed on the New York State and National Registers of Historic Places. President John F. Kennedy once stopped there as did movie superstar Marilyn Monroe and sports legend Joe DiMaggio.