SCHENECTADY Van Dyck sale reported near Landmark restaurant faces auction block BY MICHAEL LAMENDOLA Gazette Reporter
The owner of the Van Dyck Restaurant & Brewery said Friday he is close to selling the landmark business on Union Street, which is facing foreclosure. N. Peter Olsen said he believes he is a month away from selling the business to a “consortium.” “I have letters of agreement. I can’t mention who they are, but they will use it as a restaurant,” Olsen said. “I’m waiting for one of the key players to get back to us.” Olsen said he expects to complete the arrangement “in a month or so, or by end of January.” Time is running out for Olsen, however. Within the last two weeks, the U.S. Bankruptcy Court for the Northern District of New York in Albany named a referee to oversee the public auction of the Van Dyck property, said Ray Gillen, chairman of the Metroplex Development Authority. The referee will set the date for the auction, and the proceeds will be used to settle Olsen’s outstanding debts, Gillen said. Should Olsen sell the property himself before the auction, that also could satisfy the debts. Olsen said he does not think the auction will occur. “The idea is to resolve it far in advance on that situation,” he said. Metroplex filed a foreclosure action in January against the Van Dyck, which was doing business as a corporation called Electric City Brew Pub. The business had stopped paying on a loan it received two years prior from Metroplex. At the same time, Berkshire Bank also foreclosed after the corporation defaulted on other loans. Then Olsen filed for personal bankruptcy, which delayed the previous foreclosure actions. “We have been frustrated by the slow pace of action in the court process,” Gillen said. “We wish it had moved faster but we are at the mercy of the legal process here.” Olsen’s corporation owes $200,000 each to Metroplex and Berkshire; Metroplex is also seeking to recoup a $75,000 line of credit it advanced to Olsen. Olsen has listed the business for sale at $1.6 million with Re/Max Premier in Delmar, but said he would also lease it to entrepreneurs under the right conditions. The Van Dyck, he said, consists of three components contained within two buildings. The building at 235 Union St. contains a microbrewery, patio, tavern and jazz club. The microbrewery can be a standalone business, distinct from the tavern and jazz club. The 237 Union St. building, which is four stories, contains dining areas upstairs and downstairs, plus a kitchen and upstairs offices. Should the foreclosure proceed, Metroplex would retain the “Van Dyck” name, possession of which was a condition of its loan to Olsen. Metroplex began also leasing a parking lot in 2005 from Olsen under a 10-year agreement in which he received $100,000. Both Metroplex and Berkshire secured their loans with real estate owned by Olsen’s corporation. Gillen said the Berkshire loan is in the first position secured by the real estate, the building and parking lot. “Our loan is in second position.” “If the auction results in more than $475,000 being paid for the building and parking lot, Metroplex will recoup its investment,” he said.
Van Dyck owner's case tossed out of bankruptcy court Friday, February 29, 2008 By James Schlett (Contact) Gazette Reporter
SCHENECTADY — The owner of the Van Dyck Restaurant & Brewery has lost his shield in bankruptcy court, exposing him to creditors who have been lining up to foreclose on his properties in Schenectady, Saratoga and Washington counties. U.S. Bankruptcy Court Judge Robert Littlefield dismissed N. Peter Olsen’s Chapter 11 case Thursday. The dismissal follows creditors’ mounting complaints that Olsen lacked the financial resources to restructure what they called a “non-existant business.” Prior to Thursday’s dismissal, Olsen’s 11-month-old case had been rapidly unraveling. In August, Littlefield refused to block Berkshire Bank’s attempt to foreclose on the Van Dyck, a famed jazz club on Union Street. That property should hit the auction block in spring. Over the last three months, the court has also allowed separate foreclosure actions to commence on an office and rental property at 110 Center Road in Eagle Bridge. The foreclosures were initiated by Berkshire Bank and the Washington County treasurer's office. The dismissal will allow Ballston Spa National Bank to commence a foreclosure action on Olsen’s home at 90 Lake Ave. in Saratoga Springs. Olsen and his attorney, Richard Weisz, did not immediately return calls today.
How many more failed Metroplex businesses have to fail to prove that it is NOT working? How many more tax dollars will it take to flush down the toilet before they know this Metroplex is NOT working?
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
Auction set for Van Dyck June 2, 2008 by Alan Wechsler, Business writer
The Van Dyck Restaurant and Brewery will be auctioned off at 10 a.m. July 2 in the lobby of the Schenectady County Courthouse, a lawyer said today.
The former jazz bar, restaurant and brew pub, located in the Stockade District of Schenectady, closed more than a year ago. Owner N. Peter Olsen had declared chapter 11 bankruptcy, but the case was dismissed earlier this year.
Olsen owes a number of creditors. The Schenectady Metroplex Development Authority said it was owed $275,000 from a loan given to Olsen. He also owes about $250,000 to Berkshire Bank, which is behind the foreclosure.
Olsen has maintained he’s seeking financing to repay the creditors.
SCHENECTADY Van Dyck auction slated Owner of club defaulted on loans BY MICHAEL LAMENDOLA Gazette Reporter
The landmark Van Dyck Restaurant & Brewery will be up for auction July 2, according to attorneys. The Stockade music club has been in foreclosure for the last year. Bankruptcy referee Roland Faulkner said the auction will include the building at 235-237 Union St. and a parking lot a block away as one parcel. Berkshire Bank, which initiated the foreclosure last year, will set the minimum auction price, he said. Owner N. Peter Olsen defaulted on a $250,000 loan from Berkshire and a $200,000 loan and $75,000 line of credit from the Metroplex Development Authority in early 2007. Olsen did not return a phone call for comment on Monday. Both Berkshire and Metroplex expect to recoup the amounts owed them, said Metroplex Chairman Ray Gillen. “Our $275,000 is fully secured by equity in the property,” Gillen said. The building is valued at more than $1 million, while the parking lot has a value of at least $100,000. Gillen said several people have contacted Metroplex with an interest in the Van Dyck property and plan to attend the auction. He expects a new owner to reopen the business in some form. Metroplex owns the Van Dyck name, acquired as collateral for the loan it gave Olsen in 2005. Gillen said Metroplex is willing to negotiate the use of the name with the new owner. “We will work with any buyers who want to use it in some form,” he said. Metroplex signed a 10-year lease agreement worth $100,000 with Olsen in 2005 to use the parking lot. Metroplex would lose control of the parking lot through the auction. Metroplex does not expect to recover the $100,000, Gillen said. Gillen said Metroplex will work with the new owner to lease the parking lot for the nearby Gillette Center. The Chamber of Schenectady County needs the parking space for a proposed mini-convention center to be built there, using the restored Gillette House. Olsen shut down the former jazz club in March 2007, saying he planned to close temporarily for repairs. He never reopened and shortly thereafter put the Van Dyck up for sale. He initially listed it at $1.6 million and is now seeking $1.48 million. State Supreme Court Justice Vincent Reilly Jr. appointed Faulkner to oversee the foreclosure, granting summary judgment in November 2007 to Berkshire Bank. Gillen said Olsen can avoid foreclosure any time prior to July 2. All he has to do is pay off the loans to Berkshire and Metroplex, he said. Olsen filed for Chapter 11 personal bankruptcy protection last year, hoping to restructure his debts and reopen the Van Dyck. In March, U.S. Bankruptcy Court Judge Robert Littlefield dismissed Olsen’s petition. He based his decision on creditors’ mounting complaints that Olsen lacked the financial resources to restructure what they called a “non-existent business.” Olsen is now facing foreclosure on his home in Saratoga Springs and on another business he operates in Washington County.
SCHENECTADY — Bidders will get a chance to purchase a piece of Schenectady history this morning. The Van Dyck Restaurant & Brewery will hit the auction block in Schenectady County Court at 10 a.m. The Union Street landmark and its parking lot at Union and Erie Boulevard will be sold to the highest bidder, as the Berkshire Bank and the Schenectady Metroplex Development Authority attempt to recoup funds loaned to the failed business. Owner N. Peter Olsen defaulted on a $250,000 loan from the bank and a $275,000 loan from the Metroplex in early 2007. The building is valued at more than $1 million, while the parking lot has a value of at least $100,000. Once the building sale is finalized, Metroplex will move to auction off the former club's contents. Chairman Ray Gillen said the restaurant supplies — including the Van Dyck's beer brewing equipment — is the property of Metroplex and should ensure the authority an additional return from the foreclosure. "That will net something," he said Tuesday. Metroplex also owns the right to the Van Dyck name. Olsen could have avoided the auction by producing the money owed to Metroplex and the Bank, however there was no indication Tuesday he had this ability. Attempts to contact Olsen were unsuccessful Tuesday evening.
I wouldn't even bid $1.00 on it. Who would want to invest and own a business in such a crime ridden city as Schenectady? And in a city with such incredible high taxes. There are more businesses that are either moving out or have never come to fruition than there are businesses opening. Not to mention...who actually comes to that part of Schenectady? It will be interesting
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
SCHENECTADY — This morning’s auction of the landmark Van Dyck Restaurant & Brewery has been cancelled.
Metroplex Chairman Ray Gillen said this morning that the auction was called off when Van Dyke owner N. Peter Olsen received a stay of the foreclosure after filing for corporate bankruptcy protection.
I wonder if it was Judge LITTLEFIELD? I see that name in bankruptcie stories ALL THE TIME. Shouldnt he recuse himself since his son is involved in checking on the misdeeds of Metroplex?
Perhaps Steve Waite (The Big House), gave him some pointers. Or perhaps even representing him?
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
Is judge Littlefield the father of the Littlefield that posts here? Because if he is there will be lots of finger pointing and all that from the local democrats
Quoted from Salvatore: I wonder if it was Judge LITTLEFIELD? I see that name in bankruptcie stories ALL THE TIME. Shouldnt he recuse himself since his son is involved in checking on the misdeeds of Metroplex?
No, no direct relation to Judge (Robert?) Littlefield, though likely a distant relative as the family traces back to one of two groups who settled in New England and Texas. If, however, he has $$$, I may be able to prove a genetic link.
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