Butler Mayor Tom Donaldson said he has no concerns about the financial problems with Kelly Automotive Park affecting the future of the Centre City project.

Art Cordwell, executive director of the city redevelopment authority, said at the authority’s meeting Monday night that the proposed Marriott Springhill Suites hotel downtown could be in jeopardy if the authority goes bankrupt due to its debts associated with the stadium, including $45,000 in missed mortgage payments to Dollar Bank.

Cordwell said if the authority declares bankruptcy, he does not believe the state would hand over a $2 million grant previously designated to help construct the hotel, of which the authority is set to be a 36 percent owner.

However, Donaldson said he is not concerned about the ballpark affecting the hotel project or the proposed 239 space parking garage.

“The redevelopment authority isn’t going to go bankrupt,” he said. “That’s not something that should have been said at the meeting. But it’s a free country, and Art can say what he wants.”

Cordwell on Monday expressed frustration with the City Parks, Recreation Grounds and Facilities Authority, which manages the ballpark. That authority last week said it would not pay the redevelopment authority about $140,000 in previously listed debts, claiming the costs were associated with the construction of the ballpark and therefore the responsibility of the redevelopment authority.

Cordwell also was upset that the facilities authority used $40,000 gained in the sale of its share of the Butler BlueSox baseball team to pay off its other debts and not the late mortgage payments owed to the bank.

Nick Ban, chairman of the facilities authority, said his board used the money to pay off its own debts to smaller businesses before focusing on the bank.

“We had outstanding debts to a number of small businesses,” he said. “These are businesses in our community that rely on having those debts paid more so than a bank. We wanted to take care of those debts first.”

Cordwell said those decisions leave the redevelopment authority in a dire financial situation that could result in bankruptcy.

A spokeswoman with the state Department of Community and Economic Development said Tuesday that she was unable to comment on whether the state would pull the $2 million grant for the hotel in the event the redevelopment authority declares bankruptcy.

Both the facilities and redevelopment authorities have responsibilities to the ballpark and its financing.

The redevelopment authority has the mortgage on the stadium and is ultimately responsible for paying for it.

However, the facilities authority was created by the city to manage the park. It also has a contract to make the $8,800 monthly mortgage payments for the redevelopment authority, Cordwell said.

Donaldson said a possible solution to the confusion around the two authorities is to turn over ownership of the park to the facilities board, which is ultimately set to take control of the park once the mortgage is paid off.

“If they can finance it, that would be great,” Donaldson said. “It would give some clarity.”

The mayor said the facilities board will meet with Dollar Bank soon to attempt to switch over the mortgage.

Ban said he would be in favor of his board taking control of the ballpark.

“That would be fantastic,” he said. “That was my first thought when I received the default letters last Thursday.”

Members of the redevelopment authority expressed interest in that proposal Monday night.

Cordwell said the redevelopment authority only financed the park during its construction because the facilities board was newly created and unable to take on the debt.

The redevelopment authority has about $1.6 million left to pay on the stadium.

Donaldson said he is in favor of the two authorities holding a joint meeting to iron out the future of the ballpark.

“There has not been enough communication in the past between the two boards,” he said.

Ban said he sent a letter to the redevelopment authority requesting a joint meeting, but never received a response.

Donaldson said he does think there is a successful future for the ballpark.

“I do think there’s a future there,” he said. “This could be a break-even year for the ballpark. They need a couple good years to really turn the corner.”

Ban agreed, saying he is optimistic about the future of the park.

“All I know is our board is making the best effort we can to make things right,” he said, adding the ballpark has 30 new outfield advertising signs lined up this summer and a long-term lease agreement with the BlueSox.

“There’s a renewed interest on the board,” he said. “We want to make this work. The stadium has been an asset to the city for 80-plus years.”