Cary, NC – Mayton Inn owner Deanna Crossman and Cary’s Chief Strategic Communications Officer Susan Moran met with Downtown Cary business owners and any other residents who wanted to come out to talk about the Mayton Inn filing for Chapter 11 bankruptcy and answering questions from the audience.
Details on the Mayton Inn
Crossman, who owns the Mayton Inn with her husband Colin Crossman, and Moran addressed the Heart of Cary Association on Thursday, October 4, 2018. The Mayton Inn and its parent company Memento Mori, LLC filed for Chapter 11 bankruptcy last week – the details of which are available online – and Crossman said this is a restructuring and not a liquidation.
“We’re booking for the holidays, we’re preparing for Thanksgiving, we’re not going anywhere,” Crossman said.
Because the case is currently in bankruptcy court, Crossman and officials from the Town of Cary are limited in what details they can say but Crossman said they have proposed a full payment plan. With Chapter 11 bankruptcy, the company is given more time to pay what they owe but must prove they are profitable, which Crossman said they are.
Moran said the Town of Cary’s loans to the Mayton Inn equal about $2.35 million, with $951,000 of that just coming from the land in Downtown Cary.
“The Town of Cary asked us to come and build there,” Crossman said. “It was not a bid process.”
As for the remaining $1.4 million, that comes from the federal government, specifically Housing and Urban Development, through the Community Development Block Grant. The idea, Crossman said, was to create a business in Downtown Cary that would create sustained jobs through employees at the Mayton Inn and to have many of them live in the local area.
If the Mayton Inn defaults on that loan, then “the Town must pledge its CDBG funds to repay the outstanding loan amount,” according to the financial statement on the loan from 2015.
The Mayton Inn did not pay impact fees or development fees for its construction, but as Crossman said, these fees were waived for many businesses downtown for a three year span because of the Academy Street construction.
Confidence in the Mayton Inn
Throughout the address to the Heart of Cary Association, both Crossman and Moran said they were confident the downtown business would be able to continue.
“We’re looking forward,” Moran said. “We believe in the concept and we believe in the Crossmans.”
Crossman also used her time to clarify how she viewed the Mayton Inn, namely that it is meant to be a casual family style establishment.
“We’re not competing with the Umstead. We’re more in line with Hampton Suites,” Crossman said. “We don’t want to be a special occasion place.”
Moran also said the Mayton Inn is a preferred hotel for the Town of Cary and town employees have been given discounts when buying rooms there. Also, during Hurricane Florence when members of Moran’s staff who live out of town needed places to stay (plus Moran’s mother who lives in Morehead City), Moran said they stayed at the Mayton Inn. Moran also encouraged those at the meeting to support the Mayton Inn through eating and drinking there and housing travelers in the hotel’s rooms.
Also at the meeting, several attendees asked for a direct information portal or some kind for information and updates on the Mayton Inn. Moran said something like that was being considered by town staff.
Story by Michael Papich. Photos by Hal Goodtree and the Mayton Inn.