As of March earlier this year, multiple mechanics liens have been filed against projects for two luxury hotels — Hotel Cerro and Hotel SLO — in downtown San Luis Obispo, California. Between the two properties, contractors claimed almost $12.5 million over the past few months. Although some of those debts have been settled, the hotels still face 10 liens in total.
Most of the mechanics liens filed on Hotel SLO have been released, while all of the liens on Hotel Cerro still appear to be active. Hotel Cerro is also facing two pending foreclosure actions.
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Five Mechanics Liens Filed Against Hotel Cerro, Two Pending Foreclosures
Located at 1125 Garden Street in San Luis Obispo, CA, Hotel Cerro faces five mechanics liens. The total amount owed to contractors over multiple projects is $6,847,186.67.
The most valuable mechanics lien was filed by Specialty Construction, Inc. on April 27th to the total of $6,227,860. Specialty Construction was the general contractor on the construction project.
This lien is filed against Garden Street SLO Partners, a California limited partnership. The amounts owed are spread across eight separate condominium owners who have interest in the project from the contracting owner.
After going unpaid after filing the mechanics lien, Specialty Construction has issued a notice of lis pendens on May 6th, indicating their plans to foreclose on their mechanics lien if the balance is left unpaid.
The second lien with pending foreclosure was filed on May 1st by Presidio Tile & Stone, Inc. The mechanics lien was filed for an unpaid amount of $67,793.43. Presidio Tile & Stone served the lien against Cerro Hotel & Resorts LLC as well as other interested parties. Since the balance wasn’t paid after the lien was filed, Presidio submitted a notice of intent to foreclose on June 22nd.
The other liens filed on Hotel Cerro include:
- $263,865.38 from West Coast Air Conditioning filed on March 17th.
- $20,327.47 from Atascadero Glass on April 7th.
- $15,850 from Klaus Multiparking Inc. on June 16th.
Hotel Cerro opened for business in January with hopes to bolster downtown San Luis Obispo’s tourism industry. It’s a luxury development with 65 rooms and suites along with 8 one and two bedroom residences.
Hotel SLO Faces Four Mechanics Liens, Fifth and Most Valuable Lien Resolved
Hotel SLO is just a few blocks away from Hotel Cerro, and they’ve had their fair share of mechanics liens on the property as well. The liens currently encumbering the property total $103,094.90.
Though later released, a $5.5 million lien claim was filed by J.W. Design & Construction, Inc., the general contractor on the construction project, back on May 4th.
The companies filing the remaining four mechanics liens were hired by J.W. Design & Construction:
- T.L. Shields & Associates filed a mechanics lien against Hotel SLO for $8,483.69 in unpaid funds after furnishing labor and materials for a new pool deck elevator. The lien was filed on March 31st.
- Atascadero Glass, a claimant who also filed a mechanics lien against Hotel Cerro, has also filed a lien against Hotel SLO for $69,261.21 in unpaid labor. The lien was filed on April 3rd.
- Atascadero Glass filed a second lien to the amount of $4,928.30, also on April 3rd.
- Lastly, Klaus Multiparking, another claimant who was left unpaid at Hotel Cerro, filed a mechanics lien for $25,350 on June 15th.
Located at 877 Palm Street, Hotel SLO opened its doors on December 8, 2019. Sparing no expense, the luxury hotel includes 78 guest rooms, two restaurants, three bars, and a rooftop bar.
Tourism Takes a Hit in SLO County
Before the coronavirus pandemic, tourism was on the rise in San Luis Obispo. However, in recent months, experts have seen a sharp decline in visitors to SLO county. According to Visit SLO CAL, hotel occupancy sat at 54% in June 2020, and 37.8% in May, compared to a peak of 76.4% occupancy in June of 2019.