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Polk County board hears update on IEC/Hilton hotel financing and planned soft renovation; trustees propose using hotel distributions to fund repairs
Summary
Lawyers, finance advisers and hotel managers briefed Polk County supervisors on the structure and debt of the IEC-owned Hilton adjacent to the convention center, outlined a $7 million soft-renovation plan funded from the hotel’s FF&E reserve and hotel distributions, and asked the county to redeploy upcoming bond payments to cover the shortfall.
Polk County officials received a detailed briefing on the ownership, financing and operating structure of the convention-center Hilton — owned by IEC Hotel Corporation and managed under a qualifying management agreement with Hilton — and were told the hotel needs a soft renovation that the parties estimate will cost about $7 million.
Wayne Reams, attorney for IEC Hotel Corporation, and Tim Oswald, financial presenter, walked the board through the project’s legal and financing history, including Polk County’s ownership of the land and IEC’s status as a nonprofit title holder created to allow tax-exempt financing. Reams described governance safeguards: Polk County appoints a majority of IEC’s board seats and is the entity that ultimately benefits from the hotel; bond rules require that assets financed with tax-exempt bonds must inure to the government at bond maturity.
Oswald presented the project’s capital stack and operating flows.…
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