11 October, 2013 (All day)
This week the Morgan City Council approved providing access to a $642,000 no-interest loan from the USDA to the developer of a new hotel in Morgan City. The developer has already obtained nearly $5 million in funding on their own. This was the final step needed in the agreement with the city and the developer to facilitate the building of the hotel.
The city will now enter into an agreement with the developer, who will supply a letter of credit from a bank to secure the funding and help ensure that the note will be repaid. Under the agreement with the city the developer will be responsible for repayment of the note. It was necessary for the city to apply for the zero interest loan because they qualified as a utility provider. This program from the USDA has been used in many cities to facilitate economic development similar to the way Morgan will be using the loan.
The city took action to attract a hotel more than a year ago by contracting with former Ogden Mayor Matthew Godfrey to help bring a hotel to the city. Godfrey expressed confidence that he could attract a developer. The city agreed to pay consulting fees to Godfrey if he could deliver a hotel. The mayor and city council’s work as well as their contract with Godfrey has produced the hoped-for results.
The developer now has only a few steps remaining before they can break ground and it looks nearly certain that the city will shortly have a Fairfield Inn on Commercial Street. This will cement the business growth in the area and will likely attract other businesses.
The hotel will be a Fairfield Inn, one of the Marriott brands, and is currently planned to have 60 rooms. The developer has managed and built a number of other hotels and currently operates or owns multiple hotels. He sees Morgan as an excellent location for this business.
The city has been working with the developer for nearly a year to bring the project to fruition. It is expected that the hotel will break ground late this year or early next year once the architecture has been completed and final planning permission granted.