The White Inn on Main Street in Fredonia has been closed since last winter, but potential buyers are currently in negotiation with the mortgage company to purchase and reopen the building. Photo by Mary Heyl

FREDONIA — The White Inn in Fredonia may soon have a new owner.

County Executive George Borrello recently confirmed that prospective buyers for the White Inn are currently in negotiation with JG Funding Corp, the mortgage holder of the property for former owner Jeff Gambino.

“The White Inn hasn’t been sold yet, but the county is working with a group of buyers to assist them in acquiring the property,” Borrello stated. He declined to identify the potential buyers.

The three-story, 24-room hotel went into foreclosure earlier this year. On Feb. 19 it was reported that the original principal sum of the mortgage was $600,000 and the post-maturity mortgage debt was $950,800 as of that date. According to Borrello, the property was supposed to go to tax auction this past spring; however, the mortgage company did pay the taxes on the property and has been working with the county to find a buyer.

Borrello emphasized how important it is for commercial properties in foreclosure to be purchased in a private agreement with the mortgage holder, as opposed to tax auction.

“It’s important to note that when it comes to commercial properties, the track record is very poor,” Borrello stated. “Typically, these commercial properties sold in the tax auction wind up in the hands of underfinanced buyers or buyers who basically want to strip the place. They are often back up for tax auction within a few years.”

Borrello is looking forward to the White Inn returning to productive use very soon and believes it is a “staple” to the community – an important part of Fredonia’s character and history. Borrello, himself, has an interesting connection to this history: “I grew up in Fredonia, and I have a lot of fond memories of the White Inn,” Borrello said. “My mother’s hair salon was actually located there during the 1970s.”

Gambino decided to close the White Inn for the winter months at the end of 2017, citing slower winter tourism as the primary reason. At that time, he planned to re-open in May; however, the business has not been open at all this year. Many area residents miss dining at the White Inn, as the food/beverage portion of the business has not been in operation since December 2016.

In February, a possible purchase was considered by a previous owner, Robert Contiguglia. In a letter to the editor, published in the OBSERVER on Feb. 18, Contiguglia was incredulous at Gambino’s $1.125 million asking price, and said he made a counter-offer, “which he (Gambino) promptly rejected.”

Borrello said the prospective buyers for the White Inn are planning to return it to its former operations as a hotel and restaurant. “It’s too early to say when it might re-open because they’re still in the process of negotiating and securing the property,” he explained. “But they’re close.”