Council reviews Fairmount Hotel mortgage discharge and tenant relocation plan ahead of vote

City officials on Monday reviewed a resolution that would amend and forgive loan notes and discharge a city-held mortgage tied to the Fairmount Hotel, a senior-affordable housing property at 2595 Kennedy Boulevard in Ward B. Director of the Division of Community Development Daja Anderson told the council the property’s grant restrictions ended in November 2024 and that a balloon repayment of about $20,000,000 is currently recorded as due to the city.

The proposal before council would authorize amendments and forgive the notes made by the Fairmount Hotel to the city and authorize discharge of the mortgage recorded against the property, Anderson said. She described the property’s earlier grant history and said the city’s Community Development Block Grant (CDBG) rules typically create non-interest-bearing loans that mature as a balloon payment at the end of a restricted period.

Anderson told council the Fairmount property previously received three funding streams, “totaling in the ballpark of slightly over a million dollars,” and that those restricted periods ended in November 2024. She said the balloon…