Erie County finance panel reviews plan to refinance Sheraton and Courtyard hotels

Peter Filippi, managing director with Piper Sandler, told the Erie County finance committee on June 18 that his firm planned to refinance the outstanding bonds on the Sheraton Hotel and the bank loan on the Courtyard Hotel and combine the obligations into a single issuance. "The savings on the Sheraton bonds is about 150 basis points," Filippi said, and he added that the Courtyard loan "will be reduced by about 100 basis points."

Filippi said the combined transaction is meant to be more efficient and noted that, compared with the original financings, the hotels’ debt has been paid down by roughly half. He described the bank loan on the Courtyard as a short‑term facility with a mandatory tender in 10 years and an interest‑rate reset in five; the plan presented to the committee sticks with existing amortization rather than extending terms to 30–40 years, a change council members had previously questioned.

Administration staff said they reworked the analysis to reflect council concerns and confirmed the ordinance presented at the meeting was a first reading that will go to county council next week; if approved, the administration said it expects a second reading in July. Council members pressed staff for clarity on amortization length and market timing; Filippi and staff emphasized the objective is to achieve a fixed‑rate, longer‑term structure that does not extend beyond the original bond life for the assets.

The finance committee did not take a final vote at the meeting; the ordinance will proceed to the full county council for further consideration and a possible second reading in July.