IDA calls meeting on hotel

Staff

Published Tuesday, August 26, 2003

Suffolk News-Herald

The city and investors in the Hilton Garden Inn and Conference are expected to sign off on documents this week that will keep the project moving toward an October groundbreaking date, a city spokeswoman said.

The Industrial Development Authority, during a special meeting at 9 a.m. Thursday, will review paperwork authorizing the sale of $13 million in industrial revenue bonds, said Christine Ledford, the city's finance director. That money is earmarked for construction of the city-owned convention center.

Meanwhile, the Atlanta-based developer, Stormont Hospitality Group, and its new equity partner, Noble Investment Group, operating as Suffolk Hotels LLC, will meet with TowneBank representatives Thursday afternoon.

Suffolk Hotels is expected to close on its $6 million loan with the bank, Ledford said. That loan was secured by a $2 million letter of credit from the city.

Total, Suffolk Hotels will invest $9.5 million in the project. The company will put up the remaining $3.5 million in cash.

The $22 million, 150-room hotel project has repeatedly stalled in recent months because one of its original partners, the Procaccianti Group, wanted out of the deal. That action prompted Stormont to bring Noble, who fill also operate the hotel, into the picture in early July.

---

WOULD YOU LIKE TO SHARE THIS STORY?

---