(WEEK) — A Peoria County judge has given developer Gary Matthews and the hotel’s largest investor 10 days to work out a deal.
Judge Katherine Gorman ruled against developer Gary Matthews and for investor Indure Build-to-Core Fund, LLC in a judgment entered into court records Monday morning. The $33.9 million order comes after a multi-year effort by Matthews to refinance the hotel. The attached Courtyard by Marriott hotel and the City of Peoria are also named as defendants ruled against on Monday.
An official with the Marriott hotel said the order signed gives Matthews until Feb. 23 to work out a refinancing agreement. If an agreement is not reached, the official said Indure will take ownership of the hotel. If the parties work out an agreement on the outstanding debt, the official said Matthews will remain owner of the hotel.
25 News reached out to the Peoria County Circuit Clerk’s Office for more details.
In January, the Peoria City Council approved a refinancing agreement on the hotel deal. The city converted its mortgage into an unsecured loan and also approved a four percent Special Service Area tax on the two hotel properties.
The city loaned $8.2 million to help Matthews acquire the historic Pere Marquette property and build the adjacent Marriott hotel.
It remains to be seen how the foreclosure and sale of the property may impact the city and other investors.