CEDAR RAPIDS - There are new developments in the Crowne Plaza situation that the Cedar Rapids city manager says could drastically change everything with the hotel.

Wednesday night city manger Jim Prosser said the hotel's owners are in default of a major bank loan and the lenders are foreclosing on the company.

The hotel has been in the middle of financial problems since this spring.

Prosser said the owners, Kronos Hotels, based in Atlanta, GA, could lose the building because of the bank troubles.

Prosser said the city is looking forward to the court appointing a temporary manager to the account, so the city can renegotiate how the hotel will do business and put in some provisions to make sure employees get paid, among other things.

It's unclear how quickly the court could move, but Prosser hoped it would be within weeks.

The Cedar Rapids Area Chamber of Commerce and the Downtown District are publicly putting pressure on the city to clean up the hotel, and if that means replacing the owners, so be it.

"Frankly I think they've reached the end of their rope. I can't see them continue to stave off any legal action," said Scott Byers, Chamber of Commerce Board of Directors.

The city owns the property the building sits on, and leases that property and the air rights to Kronos Hotels. That lease gives the city power to essentially kick out the owners, if they fail to meet certain guidelines, according to Prosser. However, Prosser said its the city's choice to decide when the hotel isn't meeting those guidelines.

Kronos representative Peter Mathon told KCRG TV9 the company is committed to running the hotel for the long term.

Email Justin Foss at Justin.Foss@kcrg.com