TRENTON – The Local Finance Board approved an $11.5 million application for Trenton Wednesday in connection with the troubled city-backed hotel.
The board OK’d refinancing of debt incurred by the Lafayette Yard Community Development Corp., which was guaranteed by the city for the hotel once known as the Trenton Marriott.
Marriott removed its brand from the operation months ago, the hotel eventually entered bankruptcy court, and was auctioned for $6 million to Edison Broadcasting late last month.
The 197-room hotel cost about $60 million along with its garage, and it was overseen by a non-profit board. Closing of the auction deal is scheduled for Tuesday, the Finance Board was told.
Although the approval today was for $11.5 million, bond counsel Ed McManimon informed the board that “the city is only going to issue what they have to issue.’’ The actual amount could end up being closer to $10 million, he said.
Out of the $6 million auction price, approximately $3.5 million would go to help reduce outstanding bonds, he said. Altogether, there is about $14.5 million in outstanding debt guaranteed by the city.