City Responsible for $12 million of Marriott debt
To determine the exact nature of the City’s guarantee of Marriott Hotel debt, NewsLanc obtained a copy of Guarantee Agreement dated March 29, 2007 between (sic) the City Of Lancaster and Redevelopment Authority of the City of Lancaster and Fulton Financial Advisors, National Association “With Respect To guaranteed Special revenue Bonds – Series of 2005″ in the amount of $12,000,000.
In it the City “guarantees, unconditionally” …“the full and prompt payment of the principal …[and] the full and prompt payment of the interest..”
Also “the City covenants and agrees to pay all reasonable costs, fees, expenses and charges…in enforcing the City’s guaranty obligation …”
The City could technically try to collect such payments from the Redevelopment Authority of the City of Lancaster (RACL), but it has no revenue and lacks taxing power.
Aside from the guarantee agreement, the city also waived building permit charges, will receive no real estate taxes, and will be required to provide municiple and police services.
I wonder when the general public in Lancaster City and Lancaster County will ever be informed about all the ‘behind closed doors’ deals that were made for PSP benefit. Contrary to the letter to the editor in the morning Intell………Dale High looks out for Dale High first, second and third……….the same could be said for LNP.
Did anyone else notice in Friday’s article in the Intell Journal on the grand opening that the convention center and hotel have been “declared” tax exempt. Did I miss something? I thought that the tax revenues were the big selling point.
Just wondering.