City defers payments for DoubleTree hotel loan
YOUNGSTOWN, Ohio – The city’s control board has approved a deal with the owner of the downtown DoubleTree by Hilton Youngstown hotel that adds the nearly $ 122,000 in missed payments on his city loan to the lump sum payment to be done at the end.
The Youngstown Stambaugh Hotel has asked the city to approve the Consent, Waiver and Deferral Agreement as it is in the process of renegotiating its funding with its two major lenders, said Kyle Miasek, the city’s chief financial officer. .
The owner of the hotel approached the city about four weeks ago with his request.
The city has provided a loan of $ 700,000 and is third in the funding pile for the $ 32 million project. The first of 23 missed payments was due in December 2019.
âEven though what we have for a loan is small compared to the senior loan, because of our positioning on that stack, any change in funding required our signature,â said Miasek.
At the same time, the city points out that Youngstown Stambaugh is behind in its payments, he continued. Earlier this year, the city postponed the first 14 payments at the end of the loan.
“We hold them accountable for that” by adding the total of $ 121,895.08 of missed payments to date, plus penalties and interest, to the lump sum payment due in December 2026, he said. The next payment is due in 2023.
Miasek had no information on hotel occupancy rates – hotel companies like the Youngstown DoubleTree were particularly hard hit during the COVID-19 pandemic – but said financial information shared with the city indicated ” significant improvement in income âover the past three months.
Also during the meeting, the board – which consists of Miasek, Mayor Jamael Tito Brown and Legal Director Jeff Limbian – approved $ 2,825 for Commercial Cabinets Inc. from the city’s COVID-19 business stabilization program. for eligible expenses.
So far, the city has provided $ 172,425 to city businesses as part of the program, said T. Sharon Woodberry, the city’s director of economic development.
Copyright 2021 The Business Journal, Youngstown, Ohio.