Matthews foreclosures concern City of Peoria, investors

By WEEK Producer

June 9, 2014 Updated Jun 9, 2014 at 6:17 PM CDT

PEORIA, Ill -- The City of Peoria is hoping its investment is safe after contributing millions of dollars to the renovation and construction of the Marriott Pere Marquette and attached Courtyard by Marriott.

Reports have now surfaced that that the hotels' developer, Gary Matthews, has been named in multiple lawsuits and is facing foreclosure proceedings on other properties in Tazewell County.

The possibility of Matthews going bankrupt has investors on alert.

“Many of the other properties that the banks foreclosed on over in Tazewell County were not directly related to this project, but we're going to keep an eye on that,” said City Manager Patrick Urich. “We're going to dig into it a little bit more, review it from our perspective, and make sure that our rights are protected.”

In total the city has invested $36 million in the two hotels, including $29 million of taxpayer bonds.

To submit a comment on this article, your email address is required. We respect your privacy and your email will not be visible to others nor will it be added to any email lists.