ECCCA Lays Out Hotel Bond Guarantee Proposal

Published 01/23 2014 10:46PM

Updated 01/23 2014 11:14PM

January 23, 2014 - The Erie County Convention Center Authority officials is hoping to borrow an amount not to exceed $60 million in either a bond or bank financing to build a new hotel next to the convention center.

The authority is asking for a debt guarantee from the county up to that amount; however, the guarantee would only apply to roughly $35 million, since there is already a $25 million state grant that would help with funding the hotel.

Taxpayers would only have to pay if the authority defaulted on payment.

Authority officials say the reason why they think another hotel is necessary is because it would help build up the bayfront and that it would also bring in more associations that have refused to host conventions here in Erie because of a lack of hotel accommodations.

While the authority is hopeful the county says ‘yes’ to its request, some like Scott Enterprises - the Erie-based private developer that wants to create the $150 million Harbor Place development on the bayfront - believe that that area of the bayfront could be better used in a different capacity.

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