Richmond Hill Inn foreclosure, fire inspection, tax records

Five months before a devastating March 19 fire destroyed the Richmond Hill Inn’s historic mansion, legal battles had been heating up between the current and former owners of the property. The fire was intentionally set, according to investigators.

William Gray bought the property in 2005 for $10.4 million from owners Albert and Marge Michel of Greensboro. The Michels bought the property in the mid 1980s from the Preservation Society of Asheville and brought the property back to life. Over the years the original structure, built in 1889 as a private home for ambassador and congressman Richmond Pearson, had fallen into disrepair.

But Gray fell behind on an owner-financed $8.8 million deed of trust with the Michels, who initiated foreclosure proceedings. A notice filed in Buncombe County District Court on Oct. 29, 2008, stated that Gray still owed $6.9 million.

The day before the foreclosure hearing notice — Oct. 28, 2008 — Gray filed his own civil lawsuit against the Michels. Gray alleged fraud in the suit, stating that the Michels hadn’t disclosed the fact that the plumbing system for the mansion and guest cottages had been experiencing hundreds of leaks. The problems with the polybutylene pipes that comprise the plumbing system were discovered in 2006, according to Gray’s lawsuit. The defendants denied the allegations. Click here to read Gray’s original complaint.

In a separate foreclosure proceeding, county officials were seeking to recoup $64,000 in unpaid property taxes for 2008, according to Buncombe County Tax Director Gary Roberts. Click here to see the tax documents.

On March 16, three days before the blaze, another notice was filed in court announcing that the Richmond Hill Inn property would be sold on the steps of the Buncombe County Courthouse to the highest bidder. The date of the sale was set for 10 a.m. on April 16. Click here to read the foreclosure petition; click here to read the order allowing foreclosure sale; and click here to read the notice of the sale of the Richmond Hill Inn on the courthouse steps.

Click here to read the report of the last inspection of the Richmond Hill Inn property by the Asheville fire marshal’s office.

Click here to read the company’s federal bankruptcy filing, and click here to read a companion filing here listing the top 20 creditors.

SHARE

Thanks for reading through to the end…

We share your inclination to get the whole story. For the past 25 years, Xpress has been committed to in-depth, balanced reporting about the greater Asheville area. We want everyone to have access to our stories. That’s a big part of why we've never charged for the paper or put up a paywall.

We’re pretty sure that you know journalism faces big challenges these days. Advertising no longer pays the whole cost. Media outlets around the country are asking their readers to chip in. Xpress needs help, too. We hope you’ll consider signing up to be a member of Xpress. For as little as $5 a month — the cost of a craft beer or kombucha — you can help keep local journalism strong. It only takes a moment.

Before you comment

The comments section is here to provide a platform for civil dialogue on the issues we face together as a local community. Xpress is committed to offering this platform for all voices, but when the tone of the discussion gets nasty or strays off topic, we believe many people choose not to participate. Xpress editors are determined to moderate comments to ensure a constructive interchange is maintained. All comments judged not to be in keeping with the spirit of civil discourse will be removed and repeat violators will be banned. See here for our terms of service. Thank you for being part of this effort to promote respectful discussion.

7 thoughts on “Richmond Hill Inn foreclosure, fire inspection, tax records

Leave a Reply to generic cialis ×

To leave a reply you may Login with your Mountain Xpress account, connect socially or enter your name and e-mail. Your e-mail address will not be published. All fields are required.