On November 27, 2018, the City of Yakima received a notice from HUD of the opportunity to participate in a federal refinancing of two Section 108 Loans approved by the City of Yakima in 2004. These loans supported the development of the Hilton Gardens Inn project by Morrier Hotel, LLC. The original loan from HUD for the project was $3,560,000. In 2004, all loan costs were paid by Morrier Hotel LLC. The private company (Morrier Hotel LLC) makes monthly payments on the loan directly to the financial institution. This loan was an economic development project in 2004 and available within the City of Yakima due to our participation in the Economic Development Initiative (EDI) Program of HUD.
The opportunity to refinance the loan at a lower interest rate came unsolicited to the City of Yakima. We shared this information with the loan recipient (Morrier Hotel LLC). They have indicated a desire to participate in the loan refinance to a lower interest rate and will cover all costs including those incurred by the city of Yakima and the closing costs. Upon approval by the City of Yakima, final documents will be prepared and submitted to HUD. |