Redevelopment Commission approves three-month extension for Hotel Carmichael loans

The Carmel Redevelopment Commission voted to approve Resolution 26-01, authorizing a three-month extension of the current loan arrangements for the Hotel Carmichael. Executive Director Henry Mestetzky told the Commission the CRC is a backstop on those loans and that the extension preserves the same terms while the city and project partners pursue due diligence on a proposed expansion.

Mestetzky summarized the project27s status and history on the record, saying the hotel was originally developed in partnership between the redevelopment commission and a private developer and that the CRC had provided a backstop to the hotel loans. "The hotel loans are backed by the operations of the hotel...the CRC was essentially a backstop," he said, explaining the short extension is an interim step as the larger expansion concept is explored.

A commissioner stated the short extension was a common practice in real-estate transactions and did not indicate an event of default, and then moved the resolution. The Commission moved, seconded and approved the extension by voice vote. The record includes multiple spellings of the private partner27s name (appearing as both "Petcor" and "Petco" in the transcript); that inconsistency is noted in the record and should be clarified in follow-up documentation.

The motion passed on the floor and the Chair announced the meeting would be adjourned pending execution of documents. The Commission did not record any amendments to the extension or set an alternate timeline beyond the stated three months.