Foreclosure order issued for Springfield hotel

              January 16, 2008
Scott Burnham
(312) 550-3947 (cell)
(312) 814-2997
sburnham@treasurer.state.il.us
Foreclosure order issued for Springfield hotel
Treasurer Giannoulias aims to end costly ordeal and sell hotel
A judge has entered an order of foreclosure for the President Abraham Lincoln Hotel and Conference
Center in Springfield, marking a significant step toward ending a 25-year political and financial
debacle that has cost Illinois taxpayers nearly $30 million, State Treasurer Alexi Giannoulias said
today.
The foreclosure order, signed by Sangamon County Circuit Court Judge Patrick J. Londrigan on
Monday, is the first step in removing the hotel from the owners’ hands and paves the way for the
Treasurer’s Office to gain title to the hotel. Giannoulias then plans to conduct a public auction to
recoup as much as possible for taxpayers.
“The days of sweetheart deals and cronyism at taxpayer expense are over,” said Giannoulias, who
has sought to foreclose on the property since taking office a year ago. “After 25 years, we need to
finally put an end to this ordeal once and for all. It’s dragged on for far too long and cost the state far
too much money.”
The owners of the hotel were granted a $15.5 million state-backed loan through the Illinois Insured
Mortgage Pilot Program in 1982 to build the hotel, which opened three years later as the Ramada
Renaissance.
The owners soon fell behind on repaying the loan, but the state restructured the loan agreement in
1990, which enabled the owners to make payments only when the hotel made a profit. In 2005, the
hotel lost its franchise agreement, and Marriot International, Inc. pulled its flag.