ACTION REQUESTED:
Title
Communication from the City Manager with a Request to APPROVE a REFINANCING AGREEMENT with PERE MARQUETTE HOTEL, LLC, and Affiliates Subject to the Receipt of $2,000,000.00 of Refinancing Proceeds and the Establishment of a 4% Hotel Tax Special Service Area for the Hotel Pere Marquette and Courtyard.
Body
BACKGROUND: In 2012, the City Council adopted a Second Amended and Restated Redevelopment Agreement by and among the City of Peoria and EM Properties, Ltd., and several limited liability companies established to operate and maintain the Pere Marquette and Courtyard hotels. They include:
* Pere Marquette Hotel, LLC, an Illinois limited liability company;
* Pere Marquette TIF, INC., an Illinois corporation;
* Pere Marquette Courtyard, LLC, an Illinois limited liability company;
* Pere Marquette Garage MT, LLC, an Illinois limited liability company;
* Pere Marquette Garage, LLC, an Illinois limited liability company; and
* Pere Marquette Historic, LLC, a Delaware limited liability company.
Collectively, these entities are referred to as the "Borrowers".
As part of this redevelopment agreement, the City agreed to make available to the Borrowers a term loan for the Project in the principal amount of $7,000,000.00 (the "Original Project Loan"), and a promissory note made by the Borrowers, except Pere Marquette Historic, LLC in favor of the City and were secured by a second mortgage on the property and personally guaranteed by Gary E. Matthews.
INDURE Build-to-Core Fund, a limited liability company, Morton Community Bank, South Bank and Caterpillar, Inc. formed the senior lending group (the "Senior Lender"), which held the First Mortgage on the project in the amount of $30,000,000 (later increased to $33,000,000). The City was required to sign a Subordination Agreement with the Senior Lender and the tax credit purchasers that stated, among other things, that the City could not take action against the Redeveloper Borrowers without the c...
Click here for full text