Youngstown Board of Control Finalizes Hotel Refinancing
YOUNGSTOWN, Ohio – The city’s Board of Control voted to execute a waiver and amendment agreement with the owners of the DoubleTree by Hilton Downtown Youngstown during its meeting Thursday morning.
The waiver, which permits the city to restructure its loan agreement with Youngstown Stambaugh Hotel LLC, was approved on a 5-1 vote by City Council during its meeting Wednesday evening.
Youngstown Stambaugh Hotel took out a $700,000 loan from the city in 2016, one component of the capital stack the partnership assembled to redevelop the downtown Youngstown building, but until recently had yet to make any payments on that loan.
The new balance for the loan is $845,128. Under the new terms, the debt will accrue interest at a 2%-year annual rate over a 25-year term. The hotel owners will pay interest-only payments of $8,451.28 semiannually, July 1 and Jan.1, for the first five years, then make twice-yearly payments of $25,738.88 for 20 years.
The conditions of the loan agreement will mirror those made to the hotel owners’ $4.9 million loan from the Ohio Water Development Authority, which required the city to adopt the same terms it had reached with the hotel owners.
Also during the meeting, the board entered into a $329,350 agreement with MS Consultants, Youngstown, to provide engineering and design services for the road diet and safety upgrades planned for Boardman and Walnut streets.
In addition, the board approved paying $12,284 to Desman Inc., a New York firm that specializes in parking consulting, planning, design and restoration. The payment is to meet the city’s match requirement under an Opportunity Appalachia Technical Assistance Grant to support development and financing of a parking garage financial feasibility study. Opportunity Appalachia contributed $30,000 for the project.
Published by The Business Journal, Youngstown, Ohio.