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Local News in Brief : Anaheim : Refinancing of Garages at Hilton Hotel Voted

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The City Council on Tuesday approved a plan to refinance a construction loan on two parking garages at the Hilton Hotel that have been the subject of a legal dispute between the city and hotel owners.

City officials said refinancing the $54-million loan at lower interest rates will save $625,000 a year for the next 26 years.

The city has sued the hotel owners over who should pay for the garages. In a 1982 agreement, the city borrowed to pay for building the garages, with the expectation that the owners would assume loan payments. But after a dispute arose with the new owners, the Anaheim Hotel Partnership, over repayment of the loan, the city assumed responsibility for the debt.

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Since 1985, the city has made annual loan payments of $6 million. City officials said the payments are partly to blame for an $8-million shortfall in the city’s 1987-88 budget.

Under the new refinancing, the city will not have to make the $3.3-million loan payment due Aug. 1 and will recover the $2.9-million payment it made in February.

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