Lucas County has settled on a three-decade repayment schedule for debt tied to renovations at a downtown Toledo hotel, per WTVG.
The county's Economic Development Corporation voted Wednesday to issue a bond of more than $25 million, after roughly $12 million in general-fund savings was recently applied to the debt. Until then, the county had been paying only interest on about $37 million in notes, the station reported.
Stretched across 30 years, the borrowing works out to about $1.88 million annually from the county general fund. Hotel revenue goes first to the developer, Continental, which holds the mortgage, with the county paid afterward. Commissioner Pete Gerken told WTVG that county receipts have been minimal so far.
The investment has drawn criticism as the county faces a lean budget, while supporters say it has transformed part of the city. Gerken argued the project's value extends past spreadsheet repayment figures, describing the corner as a hub tying downtown to the convention center, Promenade Park and the riverwalk. The property, once the Park Inn, is now a Hilton Garden Inn and Homewood Suites; it sat empty during the pandemic.
Should revenue rise, more could go toward the debt, and hotel-motel tax revenue is another option, according to WTVG. Gerken said both Continental and the county held exit options within roughly the past year but stayed in, and that shifting financial conditions could allow refinancing at a better rate.