October 6, 2009
FOR IMMEDIATE RELEASE
City Pays Off Hotel Bonds, Sets Stage For
Water System Improvements
DECATUR - The Decatur City Council on Monday ended what was ultimately a profitable and successful foray into the hotel business, voting unanimously to prepay bonds used to fund the purchase of the Decatur Conference Center and Hotel in 2007.
The hotel was about to be auctioned in the summer of 2007 after succumbing to financial and operational difficulties with the possibility existing that the property would cease to exist as a hotel. Sensing what was about to happen, the Council in August of that year authorized the purchase of the hotel - issuing $7.25 million in bonds to pay for it - and later sold the facility to Lakeview Hospitality, LLC at a profit - which continues to operate the hotel today.
Terms of the bond issue stipulated that the bonds could not be paid off until this year, so the funds from the hotel sale were invested, resulting in an investment income of about $27,500.
In other business the council voted unanimously to authorize a loan agreement to borrow up to $15 million to fund an elevated south water storage tank, booster pump station and water distribution main. The city would not move forward with the agreement unless it receives stimulus funds to help repay the loan, which would be combined with 0% and low interest loans to pay for the project.
For more information contact Billy Tyus at 424-2753.