News Column

BRIEF: Convention Center Authority seeking $3M bridge loan for new hotel

February 24, 2014

By Kevin Flowers, Erie Times-News, Pa.



Feb. 24--The Erie County Convention Center Authority is seeking a $3 million bank loan to help finance its plans for a new Courtyard by Marriott connected to the Bayfront Convention Center.

The authority's board of directors last week approved soliciting proposals for what's known as bridge financing related to the project.

The money will help the authority take care of "immediate needs" such as engineering, architectural fees and other design-related costs, said Chuck Iverson, the authority's director of finance and administration.

The bulk of the project's funding will come from a $25 million state grant and up to $60 million in bond financing Erie County government has agreed to guarantee. The bond financing will be finalized later in the year.

"We'll borrow this money for the short term, and use the funds from the bond to pay those off," Iverson said.

Iverson said the authority will publicly advertise for bridge financing proposals later this week.

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Source: Erie Times-News (PA)


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