City releases closed session audio over Wyndham debt debate

SPRINGFIELD, Ill. (WAND) — The city of Springfield has released audio from a November 2nd, 2022 closed session discussion. In the meeting, aldermen were given information about outstanding debt the Wyndham owed to City Water Light and Power (CWLP).

At the time, the property owners were in discussions with New-York based developer Good Homes Corporation. The city was concerned the deal would fall through if the Wyndham's approximately $1-million in CWLP debt was not resolved. The project was ultimately stopped by city council's vote to deny a zoning ordinance request.

During the November 2nd closed session, city staff warned if the property owners declared bankruptcy, the city could risk not recovering any of the debt. This is because the city would be second in line during bankruptcy proceedings, after the lender holding the property's mortgage.

In the meeting, Ward 10 Alderman Ralph Hanaeur said, "I know we are not supposed to give away free power, but if we in this case even negotiate it to 500 [thousand dollars], it would be worth whatever they can pay just to be done with it."

Ward 1 Alderman Chuck Redpath said in the same meeting, "If we reduce it down to 675 [thousand dollars] and we get the commitment from them, on a personal note that's probably the right way to go."

Mayor Jim Langfelder told WAND News the property owners ultimately agreed to pay $1.2-million in electricity usage, while the city paid $250,000 in meter and demand charges. He said this was a necessary move because the 911 dispatch tower for the city is located on the roof of the Wyndham.

"If we do a shutdown then it disrupts your ability to communicate emergency communications, so those are the variables that city council members do not talk about," said Langfelder.

He said there are preliminary discussions happening that would allow the Wyndham to remain open with new ownership under the Marriott brand. The mayor said this may be the last chance for redevelopment because of the cost and size of the project.

"There's not many people beating down the door to take on a hotel of this structure to purchase it for probably 12 to 15 million dollars and then put an additional 20-some million dollars in it," said Langfelder.

On the Committee of the Whole meeting agenda for tomorrow, Aldermen Joe McMenamin and Shawn Gregory introduced an amendment changing the jurisdiction of who can settle and negotiate liens on public utilities over more than $50,000.