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ORDINANCE AUTHORIZING THE ASSUMPTION OF ALL CITY RELATED MORTGAGES WITH MARION SENIOR HOUSING LIMITED PARTNERSHIP ON THE FORMER HARDING HOTEL BUILDING
BY LOIS FISHER AND ASSOCIATES AND, IF ALLOWED BY THE OHIO DEVELOPMENT SERVICES AGENCY, THE RELEASE OF THE 5TH MORTGAGE, KNOWN AS THE DISCRETIONARY GRANT TO THE CITY OF MARION FOR A LOAN TO SAID PARTNERSHIP, AND DECLARING AN EMERGENCY
Whereas, the City of Marion along with Marion County, the State of Ohio, and Marion HAND made numerous loans to the Marion Senior Housing Limited Partnership (the “PARTNERSHIP” ) for complete renovation of the former Hotel Harding, and
Whereas, the City and County have a combined 1st Mortgage, a combined 2nd mortgage, the City has a 3rd Mortgage, a 4th Mortgage, and, on the loan in question, the City has a 5th Mortgage which loan was funded entirely by a State of Ohio CDBG Discretionary Grant and State Officials have indicated that usually these Discretionary Grants they make do not have to be repaid, unless there is the potential for a “Windfall” profit on the project, and
Whereas, the PARTNERSHIP, wants to sell the property
and LOIS FISHER AND ASSOCIATES (“FISHER”), is TO A willing to buyer if the 5th mortgage is forgiven and if it FISHER can assume the other mortgages according to the proposal in EXHIBIT A, and
FISHER BUYER is willing to make possibly more than a million dollars in repairs to the building in return for this action
Whereas this Ordinance would be conditioned on the State of Ohio Development Services Agency consent of the particular details of any proposal, since the State of Ohio was the source of the grant to make the loan, then
BE IT ORDAINED by the Council of the City of Marion, Marion County, Ohio
Section 1. That Council approves removal of the 5th Mortgage of the Marion (Harding Hotel) Senior Center conditioned on State of Ohio approval. SO LONG AS THE BUYER COMITTS TO REINVEST AN EQUAL SUM IN THE BUILDING WITHIN 24 MONTHS OF ACQUISITION.
Section 2. That Council approves
FISHER assuming all the other mortgages and paying them off according the Schedule in EXHIBIT A. THE BUYER SHALL PAY ALL CLOSING COSTS OF THE MORTGAGORS. IN, ADDITION, THE SUCCESSFUL ASSIGNEE SHALL PRIOR TO ASSIGNMENT PROVIDE CITY ADDITIONAL FINANCIAL ASSURANCES PROVIDING FOR AN ADDITIONAL $ 383,000 IN SECURITY WHICH MAY BE PROVIDED IN A PLEDGED ACCOUNT, A PLEDGED ASSET, A SECURED EQUITY POSITION IN A PROPERTY WITHIN THE CITY OF MARIN, OHIO OR OTHER MEANS APPROVED BY CITY.
Section 3. That since timely action on the building will be in the interest of the City, that this Ordinance is hereby declared to be an emergency measure necessary for the public health and welfare of the City of Marion and as such, shall take effect and be in force immediately upon it passage and approval by the Mayor.
President of Council
Mayor Scott Schertzer
Clerk of Council