Old Drovers Inn sold for $325,000 at auction

DOVER PLAINS — Old Drovers Inn, the celebrated hostelry where celebrities found privacy and charm and local patrons enjoyed stiff drinks and cheddar cheese soup, was sold at auction at the Dutchess County courthouse on June 25. There were two bids; the highest was $325,000.

TD Bank, which holds the mortgage on the property, opened the bidding at $300,000.  

“Do I hear another bid?� asked bankruptcy referee Gerard Pisanelli.

“Three-hundred and twenty-five thousand dollars,� said the bidder, a representative of Structure Works.

There were no other bids. And the Old Drovers Inn had a new owner, its fifth since it opened in 1750.

The small group witnessing the auction, most of whom knew each other, included Ryan Courtien, Dover town supervisor, and Chris Calayda, deputy town supervisor. Commenting on the winning bid, Calayda said he is “99-percent sure that the building will shine.â€�  

He was pleased that ownership of the inn has passed into local hands that care about the community.

The inn was opened in 1750 by the Preston family as a stop over for drovers herding animals to market. It remained in the family for more than 150 years, until the Potter family took it over, refurbished it and built its reputation as the 21 Club of the country. Kemper Peacock acquired it in 1988 and obtained the exclusive luxury Relais & Chateaux designation for the property by 1992.

As a result of a long legal dispute between Peacock and Alice Pitcher, the inn’s manager, the property was sold in 2005 to Boaz Gilad, a Brooklyn-based real estate developer.

Under Gilad, who did not respond to phone calls from this newspaper seeking comment, the inn fell into disrepair and long-time employees were fired.

The recent economic slump did it in, and the owners abandoned it. Water pipes burst and covered the first two floors with mold. The bank stepped in, cleaned the premises, and put it up for sale.

The auction was held as part of a foreclosure proceeding by TD Bank, which held a mortgage on the building and 10-plus acres for almost $900,000.

According to TD Bank’s local attorney, Michael Gartland, Hudson United provided the mortgage when Gilad purchased the inn in 2005.

Shortly after the loan was made, Hudson United was acquired by TD Bank, along with the mortgage.

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