FOR IMMEDIATE RELEASE
Thursday, March 31, 2022
Contact: [email protected]
ICYMI: Public Finance Authority Helps the City to Refinance
the Grand Hyatt Hotel in San Antonio
March 31st – The Public Finance Authority (PFA) is announcing its help to finance the acquisition of the San Antonio Grand Hyatt River Walk Hotel in San Antonio. This financing will sell the hotel to an Arizona-based nonprofit, the Community Finance Corporation, which will provide several benefits to the city. The PFA has been working closely on this deal with the city of San Antonio and the city has given its full support for this deal.
This will greatly benefit local governments like San Antonio, which will be repaid millions of dollars that they were owed for this project. As noted by project applicants, this financing “… provides the City ownership of the Hotel once the bonds are paid in full…” and “… terminates the Economic Development Agreement, thereby relieving the City of having to pledge or grant certain tax revenues to serve as additional support for the Prior Bonds…”
You can read key highlights from the San Antonio Report’s article below:
San Antonio Report: Grand Hyatt to be sold, city to be paid back under prospective deal
February 23, 2022
“… The Grand Hyatt in downtown San Antonio is being sold to an Arizona-based nonprofit under a prospective agreement that the city says will remove its financial liability from the hotel and pay back millions of dollars in various IOUs the hotel has with the city…
“… The annual rent the hotel pays to the city — or is supposed to pay the city — would move up the priority list for the hotel’s expense obligations. The nearly $5 million in back lease payments the hotel owes the city would be paid off, as would the more than $10 million the city paid to help the hotel out with its other debt payments, as well as the roughly $168 million remaining on the original bond issued by the city in 2005…”
“… Next week, City Council will vote whether to authorize consent for the new $450 million in bonds being issued by the Wisconsin governmental entity and conduit issuer, Public Finance Authority. Council will also vote whether to allow those bonds to pay back the debts Hyatt owes the city. The new bonds are expected to close in April…”
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PFA was established By Local Government. For Local Government.™, in order to provide local governments and eligible private entities nationwide with access to low-cost, tax-exempt and other financing for projects that are important to the community and contain no risk to the taxpayer. PFA is jointly sponsored by the National Association of Counties, National League of Cities, Wisconsin Counties Association and League of Wisconsin Municipalities.