The Trenton Times published the following article on December 3, 2013. To read the full article, click here.
Trenton council approves plan to borrow $11.5M to repay hotel debt
By Jenna Pizzi/The Times of Trenton
on December 03, 2013 at 9:52 PM, updated December 03, 2013 at 9:53 PMTRENTON — City council gave preliminary approval tonight to an ordinance allowing the city to borrow up to $11.5 million as part of taking over the remaining city-backed debt on the former Trenton Marriott hotel that is still due after it sold at auction last month.
The city is responsible for $14.475 million in tax-exempt bonds issued by the Lafayette Yard Community Development Corp. to build the 7-floor inn, which opened in 2002. That nonprofit board, which oversees the hotel, filed for Chapter 11 bankruptcy protection earlier this year and sold the hotel at a court-ordered auction on Nov. 25. The city, which backed the tax-exempt bonds, must now convert them into regular municipal bonds.
Edward McManimon, the city’s bond attorney, said after the hotel sold for $6 million at auction to Edison Broadcasting, it is estimated that about half of that money — approximately $3 million — will go to the city to help pay the remaining debt owed on the building. The remaining amount will go to cover a $2 million loan that was taken out to keep the hotel operating while under bankruptcy and pending the sale and the costs for professionals and other closing and court fees.