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The city of Toledo would acquire and then demolish the vacant former Clarion Hotel in South Toledo as part of a plan to attract a new retailer to the Southwyck commercial district.
Mayor D. Michael Collins sent legislation to City Council on Friday to allow his administration to acquire the 11-floor Clarion, 2340 Reynolds Rd., from the Lucas County Land Bank after the title has been cleared.
Mr. Collins said a chain retailer is interested in opening in the former Kmart store on Reynolds Road at Southwyck Boulevard.
“That whole Southwyck area has been a challenge since the mall was closed and leveled. We have opportunities that were not available given the economic climate two to three years ago,” Mr. Collins said. “We have a possible end user in retail for the property to the rear. However, they will not consider a move to Toledo until the blight is removed.”
Mr. Collins said the hotel has been stripped and has no utility. He estimated the cost of demolition at $850,000 to $900,000.
The city won’t pay anything for the property, which has undergone environmental assessments, according to the legislation. And the administration is seeking funding from federal, state, and local sources to help pay for the demolition and remediation. The mayor said grants are available to help remove the vacant hotel if it is part of an economic development project.
TransCapital Bank of Florida took control in 2009 after the former Miami Beach owners, who operated as Toledo Hotel Investment Group LLC, defaulted on $2 million in loans. At the time, the 206-room hotel was appraised for $2.1 million.
The hotel was reclassified by the county as forfeited land in November.