Resolution shows PB role in hotel project
Pine Bluff Convention Center Hotel Public Facilities Board members agreed on a resolution to be referred to the City Council for a Feb. 20 meeting.
The Public Facilities Board, or PFB, moved its weekly meeting up three days to Monday in order for its council representative, Bruce Lockett of Ward 4, to present the resolution to the Economic Development Committee on Wednesday. That would give Lockett enough time to place the item on the agenda ahead of the deadline for the Feb. 20 City Council meeting, at which time a public hearing on the resolution will be conducted. The resolution must be read three times before council members can vote on it.
According to the resolution, the city will contribute $2,935,140 toward construction costs of the hotel, which is to replace the shuttered Plaza Hotel next to the Convention Center. That money is coming from the 2017 five-eighths percent sales tax that is used for Go Forward Pine Bluff-supported projects.
The city has an agreement with Marriott to bring its Courtyard by Marriott brand to the location, which first opened in 1988 as Wilson World.
The U.S. Department of Agriculture has conditionally approved a 32-year loan of $18 million for the hotel through Farmers State Bank of Harrisburg, Ill. The board expects the loan to close by March 31 with an interest rate ranging from 8.25% in the first five years to 9.45% in the final 12 years. If paid off early, a fee of up to 8% will be added to the loan, and the fee will dwindle to 0% by year 11.
When closed, the loan will be backed by the USDA up to 80%, according to hotel board officials. If the loan is defaulted, the PFB will assume liability as owners. The board does not operate under the umbrella of city government.
Under the proposed resolution, the city will advance to the PFB $5,000 from the loan once closed for the purpose of opening a local account. The PFB voted to open the account at Relyance Bank.