Maui Sands owner sued

PERKINS TWP. — The owner of Maui Sands is being sued for allegedly failing to make payments to investors.Sinmier, Llc. — a Michigan-based company managed by Pargat Grewal— supplied Vintro Hotel & Resorts with a $7 million loan in September 2018 to buy Maui Sands in Perkins Township, according to the lawsuit filed in Toledo's U.S. District Court. The suit contends Vintro and its CEO, Inderjit Grewal, breached the loan agreement."It's a family matter," Inderjit said of the lawsuit. "We're going to get this thing resolved soon."Sinmier is represented by Cincinnati attorneys Alexandra Horwitz and Toby Schisler. Inderjit and Vintro are represented by Cleveland attorney Steven Potter. Horwitz refused to comment on the lawsuit.According to the complaint, Vintro didn't make the required installment payments and, as guarantor, Inderjit can be held accountable. Sinmier wants to receive more than $7.3 million — the loan, plus interest and court costs — and for the mortgage to be foreclosed and the property sold.Vintro claims in court documents that the property at closing was valued at more than $19 million. But the county auditor's evaluation values it at about $7 million. Inderjit said the difference in value is because Vintro's is an estimate after renovations are completed.His attorney claims Sinmier originally agreed to a $14 million loan, but cut it in half at closing and provided new terms.According to the filing, Sinmier agreed to give an additional $2 million for improvements and operation, but it would be held in escrow until after the deal was closed and the property was surveyed.Vintro never received the additional funds and assumed the money held in escrow would be used to pay Sinmier while other funds were found, the filing states.Motion for receiverThe water has been shut off to Maui Sands for months. Inderjit previously said the resort was closed for renovations after it suffered water damage.Sinmier, however, filed a motion for the Superior Hospitality Group of Ohio to be appointed a receiver of the property by the court while it is held as collateral in the lawsuit. A receiver is an individual or party who takes responsibility for a property used as collateral for a loan in default.Vintro argued against an appointment because it claimed the property's value exceeds the alleged debt. It also said the hospitality group was formed in March 2019 and doesn't have the experience to operate such a large property.Sinmier asked for the hearing on the motion to be accelerated because it claimed the property is reducing in value because of neglect. It said the resort has been subject to vandalism and vagrancy."The property is currently vacant and unsecured," said Paul Ricci, the Perkins Township building inspector. "From the property maintenance perspective, there are several violations to the property that we're processing at this time. It's not just having uncut grass; these are significant code violations."Sinmier claimed in the motion that the township was considering having the property declared a nuisance by the Erie County Prosecutor's Office, but Ricci said there are several steps they must go through first, including a building inspection."It's a very large facility and we're putting together a plan to do a full-scale inspection of the building's interior. It will probably take some time to go through and document everything," Ricci said.The township will either have to go through the court to get a warrant for the inspection or it needs the permission of the owner. Ricci said both parties in the lawsuit have been contacted about the code violations and if a receiver is appointed they will be contacted as well.Inderjit denied the township's assertions in a court filing, which included images of locked doors at Maui Sands, that the building was unsecured. He said its regularly maintained and visited by contractors.The filing goes on to state his company has invested hundreds of thousands into renovation and remediation and plans millions of dollars worth of improvements to increase the property's value."Vintro Hotels & Resorts intends to operate the property when the improvements are completed," the brief states.Maui Sands timeline• 2007: Brighton Hotel Corp. starts construction• 2008: Opens and shuts down within a year as owner files for bankruptcy• 2011: Auctioned off for $2.5 million to Maryland-based MKSP • 2012-13: Hotel then waterpark reopens• 2017: Travel Channel's "Hotel Impossible" uncovers bed bug problem• 2018: New management mitigates bed bugs, plans to raze older sections• 2018: Sells for $7 million to Vintro Hotel & Resorts• 2019: Resort closes after water damageReach reporter Michael Harrington at michaelharrington@sanduskyregister.com, follow the Register at Facebook.com/SanduskyRegisterMaui Sands water park