The trustee on $98 million of St. Louis convention center hotel bonds will hold a bondholder call today to provide an update on the city’s advancement last week of legislation that could boost the hotel’s financial viability and provide some relief from an upcoming tax-related payment owed to the city.
Bondholders took possession of the hotel following the obligated group’s default late last year on debt service payments. The hotel is not generating sufficient revenue to cover debt service.
The call hosted by UMB Bank NA is set for 1:30 p.m. Central Time to provide an update on the agreements with the city that “will have an effect on the future financial performance of the hotels,” according to a bondholder notice.
The St. Louis Board of Aldermen’s Urban Development and Zoning Committee last week approved a bill to make the hotel part of a community improvement district and a transportation development district. It would allow the hotel to tack an additional fee onto room rates, generating an estimated $600,000 annually.
The legislation also would allow the hotel to make installment payments on the $3.35 million payment in lieu of taxes owed the city at the end of the year and another $3.35 million at the end of 2010. It would allow the hotel to make payments through Oct. 31, 2011.