ALBANY -- A $500,000 loan from the state given to the Hilton Garden Inn five years ago will come due in October, officials say.
The OneGeorgia note was granted to Albany Holdings, L.L.C., in 2005 as development of the Hilton was ramping up. But the Albany-Dougherty Inner City Authority was the entity which signed the paperwork on the loan and wrote checks to Albany Holdings after the project started.
Thursday, an auditor from OneGeorgia looked through ADICA's file on the project to make sure that the $500,000 ended up where it needed to go.
And while Interim Executive Director James Taylor was able to scrap up enough of the file to appease the people at the state, it appears that a lot of the financial documents that ended up in the possession of Albany Tomorrow Inc., have never been found.
"Thankfully, we were able to get a lot of information from the banks like the financial documents and bank statements, but there were some documents that we couldn't locate," Taylor said.
Signed by Tommy Chatmon, former ADICA Executive Director and ATI President, the terms of the OneGeorgia loan say the Hilton developers are responsible for paying the $500,000 back when they are able to make a predetermined amount of profit or when five years has passed.
In October, Albany Holdings will be required to begin making payments of $6, 250 per month on the loan. If something should keep them from making the payments, Taylor says that it would fall on ADICA to pay up.
Taylor said that he's already spoken with the principals at Albany Holdings and requested they send payment confirmations to ADICA when they start paying the amount back.
In total, Albany Holdings received close to $10 million to build the Hilton, including $5.5 million in Section 108 Housing and Urban Development Loans that were issued through the city's Community Development Department.
ADICA leased the land to the developers for 99 years, Taylor said.