GREENWOOD — The owner of a troubled Greenwood hotel, the Red Carpet Inn and Fanta Suites, is selling the property, according to court records.
It’s an update to a story WRTV Investigates has been following for more than a year.
In April 2023, the City of Greenwood ordered the Red Carpet Inn to be demolished.
The city says the building is unsafe and dangerous and is full of health code, structural and fire code violations.
The hotel’s owners, Lodging & Trade LLC and Ahmed Mubarak, filed a petition to stop the demolition.
On April 24, a Johnson County judge approved the motion, effectively halting the demolition of the Red Carpet Inn.
In a motion filed on August 4, the City of Greenwood’s attorney said “Great Lakes Properties LLC” had signed a purchase agreement to buy the hotel property.
The city said it “wished to proceed with the demolition” and the demolishing of the buildings, “regardless of whether ownership of the property is transferred to Great Lakes,” read court documents.
WRTV Investigates did some checking and found Great Lakes Properties LLC was created in 2004 and the president is David Allen Smith of Fort Wayne.
WRTV Investigates is working to reach Great Lakes Properties and Smith.
It’s not immediately clear if the sale has gone through.
"The City has no comment on the pending proceedings," said attorney Jacob Bowman, who represents the City of Greenwood.
WRTV Investigates also reached out to the owner of the Red Carpet Inn for comment.
“Our client has no comment on the pending litigation,” said Scott Kreider, attorney for Lodging & Trade LLC and Ahmed Mubarak.
A hearing is scheduled for September 12 in the city’s lawsuit against the hotel.
WRTV Investigates raised questions last year regarding the health and safety of the hotel after the operations manager was found dead, and a mother found a man inside her room going through her credit cards.
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Records show the hotel has been unsafe since 2021, and according to the city is a “nuisance” and magnet for crime.
