Sale of unfinished Marriott Springhill Suites closing soon
The Butler Redevelopment Authority is expected to take action Monday on the closing of the sale of the unfinished Marriott Springhill Suites downtown to a new owner.
J.S. Capitol, the current owner and developer, is in the process of selling the hotel for $7.3 million-plus to a buyer who has not been publicly identified.
Authority solicitor Thomas Breth said the goal of all parties involved is to close the sale this month. He and the board planned to discuss the closing during an executive session held after Thursday’s regular meeting was recessed.
The meeting will reconvene 2 p.m. Monday, when the board anticipates taking action on the closing, Breth said.
Though he said the opening date of the hotel will be decided by the new owner, Marriott’s website says it will open in March 2018.
Check-ins are not currently being accepted and room rates are not posted on the website.
The pool has been filled and beds are being assembled and installed, Veronica Walker, acting executive director of the authority, said. Exterior work including installing signs and benches and planting a tree has also not been completed, she said.
Construction of the 76-room hotel at the corner of McKean and Jefferson streets started in late 2015. The hotel is part of the $13.2 million Centre City project that includes the parking garage next to the hotel.
Butler City Council guaranteed a $2 million loan from PNC Bank for the authority, which put the money toward construction. The authority has a 25 percent share of the hotel ownership.
When the hotel is complete the city is due to receive a $2 million state grant to pay off the loan. PNC has agreed to delays in paying off the loan.
The delays in completing the hotel and paying off the loan caused S & P Global to lower the city bond rating three times this year, down to a B rating, which signifies “speculative” grade bonds.
In other business, the authority approved a $120,687 budget for next year.
The budget includes $85,890 for salaries and benefits; $17,768 for office rental, insurance, office supplies, postage and phone and Internet service; $12,800 for legal, consulting and other contract services; $2,929 for travel; $1,300 for equipment and publications.
Board member Brian McCafferty said the $50,000 in estimated revenue from the hotel would be lost if the authority sells its share of the hotel.
In a separate matter, Dane Winkler, chairman of the Penn Theater Performance Company, asked the authority for an update on its plans for the theater.
Breth said the board has met with people possibly interested in purchasing it.
The theater company, which has a joint operations agreement with the authority, is trying to raise $100,000 to fix the theater’s building code issues and wants to reopen the theater.
The Pittsburgh History and Landmarks Foundation loaned the authority $290,000 to buy the theater in 2009.
The board’s goal is to clear the debt and transfer ownership to someone who will occupy and use the building hopefully for a theater, Breth said.
“If you want it bring money. Lots of it,” Mayor Thomas Donaldson, a board member, said while participating in the meeting over the phone.
The board also approved health care insurance for Walker and rehabilitation specialist Arthur Cordwell at a cost of $1,381 each from UPMC.
