Cuyahoga County Council signs off on Hilton Downtown Cleveland bailout - cleveland.com

CLEVELAND, Ohio — Cuyahoga County Council on Tuesday approved a $7.9 million bailout for Hilton Downtown Cleveland in response to a downturn in business brought on by the coronavirus pandemic.

The money will be used to pay for $1.4 million in property taxes and $6.5 million in debt payments that would typically be covered by the hotel’s revenues and bed taxes collected from hotel guests — sources that have dried up amid the pandemic.

County Council’s 11 members unanimously approved the payment on Tuesday, following a hearing last week about the Hilton’s financial picture.

The hotel has already paid $1.4 million in property taxes for the first half of 2020, and $3.7 million of the $9 million it was expected to pay toward debt service but has said it cannot pay the remainder.

In what one county official deemed a “worst-case scenario,” the county may have to pay millions more toward future debt payments.

The $272 million hotel was financed with $230 million in bonds, and leftover proceeds from a 2007 quarter-cent increase in the county sales tax. It opened ahead of the 2016 Republican National Convention, and was intended to augment the convention center.

The hotel is often described as county-owned, though the county technically leases the building from Cleveland-Cuyahoga County Port Authority, a taxpayer-supported agency that maintains Cleveland’s marine terminals and helps finance economic development projects.

Let's block ads! (Why?)

"hilton" - Google News
July 08, 2020 at 01:53AM
https://ift.tt/3iM7vIH

Cuyahoga County Council signs off on Hilton Downtown Cleveland bailout - cleveland.com
"hilton" - Google News
https://ift.tt/2GeMJPQ
Shoes Man Tutorial
Pos News Update
Meme Update
Korean Entertainment News
Japan News Update

Bagikan Berita Ini