St. Marys Council authorizes release of revolving-loan mortgage to enable sale of downtown hotel

St. Marys City Council voted to permit the Community Improvement Corporation (CIC) to release a mortgage on a downtown hotel so the CIC can complete a sale to a buyer offering $350,000.

City and CIC officials told the council the measure is intended to avoid a likely foreclosure sale, to recover portions of liens on the property, and to put the building back into private ownership and rehabilitation. "I was given the goals from, I think, council and administration that our goal was to get the building rehabilitated," a CIC representative said, adding that "I want to emphasize continually what we're talking about here is not city funds." The council suspended its rules and approved the measure by voice vote (all yeses).

The hotel—owned by Riverview Partnership while in default—has been marketed at $350,000. The buyer submitted a letter of intent and a $3,500 down payment; CIC staff said the buyer appears likely to use local financing. To permit closing, CIC asked the council to release the city's mortgage on the revolving loan fund so CIC, which holds an option on the property, can take title and then immediately transfer the property to the buyer. The CIC representative said the option price to take title…