County Sells Glenelly Inn For $1.63 million, Nets $83K

Escrow has closed on the sale of the Glenelly Inn, a Glen Ellen based property, which was seized by the county in November for non-payment of taxes by owner owner Kristi Jeppesen, the Sonoma Index-Tribune reports.

The sale of the property for $1.635 million to Ashish and Anastasia Patel, a husband-wife team of hoteliers who own the Fort Bragg based Shoreline Cottages, will satisfy back taxes and debts owned on the residence.

The debts include:

• A $1.1 million loan made by Sonoma Valley Bank, now carried by WestAmerica bank after Sonoma Valley Bank folded in the fall.
• $60,000 of property taxes and $380,000 of Transient Occupancy Tax (TOT), a hotel-specific tax.
• $90,000 to the IRS in back taxes.
• $24,000 to a relative of Jeppesen
• $50,000 of claims from Jeppesen's clients
• $7,000 from the Employment Development Division

To satisfy the debts, Sonoma County Assistant Treasurer Jonathan Kadlec negotiated the rates including "an interest deduction of $100,000 from , clear the EDD claim, get the IRS to drop its claim, settle with the family relative, and get the lien-holders from the vacation rental management claims to accept 20 cents on the dollar for what they were owed," wrote the Index-Tribune.

After all debts were totalled, the county retained $86,000 in TOT funds.

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