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City Loans $250,000 to Hotel After Takeover : Management: Money is intended to sustain Ramada until it can turn a profit. Officials also plan to turn over operations to private managers.

TIMES STAFF WRITER

The city has loaned the Ramada Hotel $250,000 for operating expenses until it begins to make a profit.

The City Council recently began managing the hotel and convention center in place of the developers--Naftali Deutsch, his four sons and several corporations they control. The developers owed the city more than $5 million in upaid construction loans and interest. They have never made any of the loan payments, city officials said.

The Deutsch family and the city two weeks ago signed an agreement turning over management to the city for the next six months. During that time, city officials said, they will seek title to the 125-room hotel, either through the courts or through an agreement with Deutsch.

City staff has been overseeing day-to-day operations at the hotel during the past two weeks. However, on Tuesday the council will interview representatives of three management firms to choose one to operate the hotel.

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Ownership of the hotel, which is just north of the Artesia Freeway (91) near Alameda Street, is complicated. The city, which wanted the hotel to be the centerpiece of its redevelopment project, has always owned the adjacent parking structure. The city also owns the convention portion of the hotel, which consists of several meeting rooms, banquet facilities and common areas on the first floor.

The developers own the hotel, but the land on which it was built is leased from the city.

When council members unanimously approved the loan last week, they urged residents of the city to patronize the hotel.

Mayor Walter R. Tucker III said that the city takeover of the hotel was a “tremendous opportunity” for everyone to rally round in support of the hotel and to build the hotel into a great success.

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