PEORIA, Ill - This hotel has been having financial woes for quite some time. But an investment company has put an offer on the table the could include pros and cons.
The developer EM Properties owes nearly $40 million dollars in payments to lenders, including the city of Peoria. The amount owed doesn't include the $2.7 million owed in franchise fees to Marriott.
Now an Arizona based lending company is offering the developer a one year loan. The loan would partially pay back several of the lenders.
The senior lender, INDURE Build-to-Core Fund would receive $32.5 million of the $33 million owed if this agreement passes.
The city of Peoria however would only receive $2 million of its nearly $8 million owed, refinancing the difference. The city also would impose a 4% special service area tax on the hotel.
“I’m gonna recommend to council that we move forward with this, it helps to receive $2 million dollars of cash right now for the city,” said City Manager Patrick Urich. “It also does establish a longer term financing mechanism for the debt service that we have and it allows the hotel to remain a Marriott product.”
We be following this at Tuesday night’s council meeting where members plan to vote on this agreement. If the agreement doesn’t pass, the city could potentially lose over $8 million dollars.