Owner of historic sports club files for bankruptcy: massive debts and a recovery plan
Capital City Ventures has filed for bankruptcy protection for the historic St. Paul Athletic Club building in St. Paul. Facing debts of up to $50 million, owner John Rupp plans to convert the abandoned property into a residential complex.
The owner of the historic St. Paul Athletic Club in St. Paul, Minnesota, has filed for bankruptcy protection with the goal of restructuring the company's debts.
According to application documents filed this week with the Minnesota District Court, the company Capital City Ventures, owned by real estate developer John Rupp, estimated the value of its assets at between $500,000 and $1 million. Conversely, the company's liabilities are estimated at between $10 million and $50 million.
St. Paul Athletic Club is listed as the company's sole asset in the bankruptcy proceedings. Attorney John Lamey, representing the company, stated that this move will allow Capital City Ventures to settle its debts and restructure its obligations.
According to him, the company was facing a deadline to pay more than $1 million in accumulated property tax debts, and failure to pay could have led to a foreclosure process on the property.
John Rupp, who owns several historic properties in St. Paul and other cities, purchased the building in 1995 and saved it from demolition. After the purchase, he transformed the site into a complex that included a hotel, a gym, and an office tower.
The building was closed in 2021 and offered for sale, but an auction held in 2024 failed to find a buyer. Despite the financial difficulties, Rupp previously stated that he hopes to convert the empty building into approximately 50 studio apartments, alongside event spaces on the ground floor. Now, as part of the bankruptcy process, the company will attempt to find a way to continue the property's operations and settle its debts.
