Unpaid Utility Bills, Shutoffs, Likely Condemnation Send Tenants Scrambling As Out-Of-State Landlords Appear To Throw In Towel On Converted Motel

In Champaign, Illinois, The News Gazette reports:

• City officials were scrambling Monday to find housing for about 30 people who remained in apartments at Gateway Studios ahead of an expected shutoff of power and likely condemnation [Tuesday].

• AmerenIP on Monday reaffirmed its intention to cut electricity to the former motel building [...] after turning off natural gas – needed to provide hot water – on Monday. City officials say Gateway Studios owes AmerenIP in excess of $44,000 in utility bills.

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• [Property manager Rose] Touchstone said she works for a group of about 15 California investors, owners of Gateway Studios, who have suffered significant financial setbacks and now appear likely to give the building up in foreclosure. She said the hotel suffered two floods last fall and then suffered frozen water pipes this winter. In all, the hotel suffered more than $1.5 million in damages during the past year, she said.

For the story, see 30 Gateway Studios residents still without homes.

For story updates, see:

• Champaign reviewing lessons from Gateway Studios,
• Officials say they will have close eye on Gateway Studios. RentSigmaSkimming