Numerous unpaid liabilities. Major deferred maintenance issues. Cash-flow problems. No apparent bookkeeping.

These are just a few of the concerns the receiver of the Albert Lea Inn reportedly discovered during the first three weeks after taking over management and operations of the hotel at the end of April through the middle of May.

In a letter filed in Freeborn County District Court from Patrick Finn, vice president of Lighthouse Management Group, to Judge John A. Chesterman, Finn describes the attempts his company has taken to manage the operations of the hotel, which is in mortgage foreclosure.

According to the letter, on April 24 the receiver contacted Tonya Navarro, one of the hotel’s owners, during which Navarro told him that Blue Dragon Properties LLC — the managing company for the hotel — had roughly $300 in its checking account.

Alliant Energy was expected to disconnect service on April 27 unless a past due balance of about $10,000 was paid. At that time she had just issued payroll checks.

Finn stated Madison Hospitality Group was hired to operate the hotel on an interim basis and conduct an assessment of the business’s operations.

A Madison employee stated the office at the hotel was found in disarray, and there were found to be no accounting system, equipment records or vehicle records in the office. The reservation system at the hotel was also not functioning, according to the letter.

That employee asked Navarro where the computer was that had been in the office, and Navarro claimed it was her personal property and that she had removed it, according to the document.

On April 27, the city of Albert Lea disconnected water service to the hotel because of a past-due balance of about $2,100. The insurance premiums were also found to have not been paid, documents stated.

At that time, the facility closed.

Though American Bank of St. Paul agreed to advance the funds needed to restore water service, the management company did not reopen the motel.

The letter stated the receiver indicated that a minimum of $75,000 was needed to reopen the motel. This did not include any allocation for property taxes or deferred maintenance issues, including roof repair, linen replacement and repairs to the HVAC system.

Ballpark estimates of a roof replacement would cost in excess of $300,000.

According to the letter, other unpaid liabilities included:

Unpaid state sales tax in excess of $39,900.

Unpaid property tax for 2007 and 2007 in excess of $53,500.

Unpaid payroll taxes in excess of $30,000.

Unpaid utilities in excess of $20,000.

Unpaid trade payables in excess of $70,000.

The receiver went on to say that Navarro did not cooperate well, though it was required of her in the court order.

“Her failure to make herself available to the receiver and provide the information requested from her in a timely manner has resulted in unnecessary expense and effort on the part of the receiver and Madison,” the letter stated.

It continued by saying Navarro refused to provide information regarding group bookings and reservations, refused to provide accounting and business records, refused to provide all necessary keys and access devices, and refused to allow reasonable access to the suite she is occupying, among other things.