TOLEDO, Ohio — There could soon be a new hotel at the University of Toledo's health science campus, replacing the Radisson that's been vacant for years.
Toledo City Council is looking into whether or not to approve a $2 million federal United States Department of Housing and Urban Development loan for the project.
However, it's causing some debate amongst some of Toledo's council members on whether or not to approve the loan.
For council members George Sarantou and Adam Martinez, the question comes down to whether or not this is a smart use of HUD money.
These are dollars designated to support the community, but the two men are split on whether or not investing in this building is a good use of those limited resources.
"It will be a boost to the economic development of that area of Toledo," Sarantou said.
"This is not the highest use of these limited, very precious funds," Martinez said.
The battle is over 3100 Glendale Avenue, the soon-to-be Delta Hotel, a Marriot property being opened by investors from New York.
"They've already started refurbishing it, they've put around $3 million of their own dollars into it, and what they need is a Department of Housing and Urban Development loan of $2 million," Sarantou said.
Sarantou said those grants have been used to renovate hotels in other cities before and believes it's a wise investment for the neighborhood.
"This project will produce at least 45 jobs and they'll be more than minimum wage, and the need is great out there," Sarantou said.
The project already has the backing of the university.
In an email to the developer, UToledo's senior vice president of administration expressed excitement and support.
But not everyone is on board. Martinez, the councilman of this district, said the devil is in the details.
"All of these hotels were in major central business districts or their downtown areas," Martinez said. "This is tucked in the middle of a suburban medical campus with limited access to the interstate."
Martinez said that makes this investment a risk, adding that these HUD funds are limited, and if misused by the city, they could never get them back.
"What I am worried about is them defaulting," Martinez said. "The city of Toledo and a lot of our nonprofits depend on this money annually."
Furthermore, he said the hotel's investors didn't request the grant for essential work.
"The loan would only cover FF and E, which is furniture, fixtures and equipment," Martinez said. "So if all else fails, we could sell the used furniture, which is usually pennies on the dollar."
However, when Sarantou heard Martinez make this point, Sarantou sent a text to WTOL 11 to rebut it, calling it misinformation.
"If the Delta Marriott hotel goes under, the city will have a first lien on one of the partner's residences that is valued at least $2,000,000. We will not be selling the hotel’s furniture! This is a fact," Sarantou wrote to WTOL 11.
According to Marriot's website, the Hotel will be ready to book the guests on Sept. 29.
Martinez said if they're ready to open their doors no matter what, do they really need the money?
City council is slated to vote on this measure on Wednesday.