The city of Toledo plans to acquire a vacant South Toledo hotel that has become a blight in the Southwyck neighborhood as part of a plan to attract a new retailer, Mayor D. Michael Collins said today.
Mayor Collins sent to council legislation to acquire the 11-floor Clarion from the Lucas County Land Bank with plans to then demolish it.
Mr. Collins said a chain retailer is interested in buying former Kmart department store on Reynolds Road.
"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. 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.
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 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 of the property at 2340 Reynolds Rd. in 2009.
The bank began foreclosure proceedings against former Miami Beach owners, who operated as Toledo Hotel Investment Group LLC, after they 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. The closure of Kmart at Reynolds and Southwyck Boulevard was announced in November.
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