Tawas Holiday Inn Update

Not only did the Huron Community Bank and the Iosco County Economic Development Commission lend money to the now troubled Tawas Bay Holiday Inn but so did the city of East Tawas:

The city of East Tawas has reached a legal settlement to recover nearly $80,000 in public money loaned to the owners of the troubled Tawas Bay Holiday Inn Resort.

The settlement reached with the city leaves the development commission on its own to pursue legal action against the bank and the hotel's owners. The development commission is owed $250,000 the hotel borrowed just weeks before the bank foreclosed.

Huron Bank President Robert Beneson testified at the hearing that he and the bank did nothing wrong. The settlement agreement with East Tawas stipulates that there is no admission of guilt or wrongdoing by the bank.

The hotel remains open for business and a judge has postponed the foreclosure sale.