Peoria Mayor Jim Ardis is weighing in after the auction for two downtown hotels failed to garner any bids in a Tuesday auction.
"It's just going to be a long-term time for us to recover," said Ardis. "The seven million dollars isn't calculated in the budget deficit that we have for next year, so that's not something that puts a tremendous amount of more pressure."
The city of Peoria was the second-largest investor in the Pere Marquette Marriott hotel financing deal spearheaded by East Peoria developer Gary Matthews. The developer later ran into financing issues, forcing the hotels into bankruptcy.
The project's largest investor, union pension fund INDURE Build-to-Core is expected to take ownership of the hotel in a Friday federal court hearing. The city is unlikely to recoup the $7 million it invested into the project.