City Executes Loan Documents for Hotel Project
YOUNGSTOWN, Ohio – The city Board of Control executed loan documents Tuesday related to NYO Property Group’s conversion of the Stambaugh Building downtown into a 133-room DoubleTree by Hilton hotel.
Signing the documents commits the city to provide a $700,000 term loan and $2.05 million bridge loan for the project and means NYO can complete its financing package, said Mayor John McNally, who is chairman of the board of control.
“It also means that the hotel project can move forward with a December 2017 opening date. It continues the momentum of positive growth and development on downtown Youngstown,” McNally said.
The bridge loan would be secured by federal and state historic preservation tax credits that NYO received for the project. Of that $2.05 million loan, $750,000 would be forgiven if certain conditions are met, including full repayment of the principal within 30 months of the loan closing.
The term loan is being offered at 0% interest for the first 36 months and 6.5% interest for the balance of the 10-year term.
City Council approved both loans at its Dec. 11 meeting.
Close of financing is expected today, McNally said. NYO managing member Dominic Marchionda was in Cleveland last week to sign financial documents related to the project.
The Western Reserve Port Authority – through its Northeast Ohio Development and Finance Agency — is providing $11.5 million in bond financing through a capital lease deal toward the $32 million project.
Financing also is being provided by First Commonwealth Bank, Chemical Bank and state and federal historic preservation tax credits totaling $9 million.
Copyright 2024 The Business Journal, Youngstown, Ohio.