From Erie times News article.
With public agency's help, developer poised to buy Erie's Avalon Hotel, make it apartments
A developer from New York City has arranged to buy the Avalon Hotel in downtown Erie and transform it into a 219-unit apartment complex
Developer got zoning variance for project in December, then focused on financing
Avalon originally opened as a Hilton in 1976 in project meant to help revitalize downtown — same goal as planned renovation of Avalon.
A multimillion-dollar makeover is getting closer for the Avalon Hotel, the declining eight-story landmark that takes up about half of a city block in downtown Erie.
A New York City developer is working with a subsidiary of the Erie County Redevelopment Authority to secure $45 million in bond financing to fund the renovation of the 193-room, 150,000-square foot Avalon into 219 market-rate apartments targeted to younger workers.
The Industrial Development Authority, an affiliate of the Redevelopment Authority, is scheduled to vote on Tuesday on issuing $45 million in bonds for the project, including the purchase of the Avalon, at 16 W. 10th St., between State and Peach streets. The vote is to occur immediately after the Industrial Development.
The Erie County Industrial Development Authority is to loan the $45 million in bond revenue to the Community Finance Corp., an Arizona-based nonprofit that is affiliated with the developer of the Avalon project, GoodHomesCo LLC.
The Industrial Development Authority is acting only as a conduit for the bond issue and is not underwriting the bonds or agreeing to accept any responsibility for their repayment, said Chris Groner, vice president of capital financing and lending at the Erie County Redevelopment Authority. He said the developer will be responsible for the repayment.
As a tax-exempt organization, the Industrial Development Authority can get better rates on bonds than more traditional agencies. Groner said the Avalon project will not be tax exempt. The authority has helped secure bond financing for a number of public and private projects in Erie County over the years.
Full Article
https://www.goerie.com/story/news/lo...t/70711077007/