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Commission approves subordination resolution for Days Inn industrial revenue bonds
Summary
The city commission approved a resolution allowing a bank to assume taxable industrial revenue bonds for the Days Inn hotel after an ownership change; staff said the action creates no financial liability for the city.
The El Dorado City Commission approved a resolution authorizing subordination of taxable industrial revenue bond series A and B (2016) related to the Days Inn Hotel and Suites and approved termination and release of a guarantee agreement tied to those bonds.
Miss West Mayer, a city staff member who presented the item, told the commission that the bonds had been associated with prior partners who sold their interest and that a bank will now hold and pay off the loan. "There is no financial liability for the city for this action," Miss West Mayer said.
The motion approved termination and release of the guarantee agreement, recognized the change in ownership under the community improvement district and authorized city staff to execute other documents associated with the sale. The commission voted in favor and the motion carried.
The presentation was limited in detail about the new ownership structure; the staff member said the primary remaining partner will be Ray (no last name provided) and that other partners may be involved. The commission took the formal action by motion and vote; no further discussion or public comment was recorded on the item.
