The owners of Solage Calistoga, a luxury resort and spa that opened in July 2007, have defaulted on a $47.2 million dollar loan on the property, according to documents filed in the Napa County Recorder’s office.
The limited partnership that owns the 89-room resort received a Notice of Default, the first step in the foreclosure process, from lendor OneWest bank in Pasadena.
The notice states that borrowers Palisades-Calistoga Resort LP are delinquent $5.2 million on the $47.2 million loan.
The property at 755 Silverado Trail in Calistoga has been in default since Nov. 1, 2009, the notice read.
“This has been a record-breaking year for our property and revenues have grown year-over-year since our opening,” Solage Calistoga General Manager Richard Hill said. However, “In this economic climate we decided to renegotiate with our bank to receive more favorable terms with our loan,” he said. “It’s a friendly discussion with us and OneWest bank.”
“We have a verbal agreement on those new terms,” with OneWest, he said. “This doesn’t affect our employees, guests or members. It’s business as usual.”
Some payments have been made on the loan since November 2009, Hill said. The property will not proceed to a Trustee Sale, the subsequent step in the foreclosure process, Hill said.
Solage Calistoga is the first enterprise of Solage Hotels & Resorts. Solage Hotels & Resorts are owned and operated by Auberge Resorts. This is the only Solage property facing a Notice of Default, Hill said.
Rates at the 22-acre property run $325 to $850 nightly, the general manager said. The resort’s 89 rooms and suites will incorporate a variety of environmentally-focused practices, including bicycles, earth-friendly interiors, environmentally safe cleaning products, locally-sourced food, sustainable landscaping, recycling and water reclamation.
Solage also offers memberships for access to the facilities on the property. The initiation fee ranges from $2,000 to $15,000. There are 160 members, Hill said.
Solage Calistoga employs 290 people, Hill said.