by Joseph Coletti
Senior Fellow, Fiscal Studies, John Locke Foundation
The Town of Cary provided loans worth $2.6 million to help open a boutique hotel, the Mayton Inn, in its downtown area. The federal Department of Housing and Urban Development loaned the town $1.4 million of that total.
Now the hotel’s owner, Memento Mori has filed for bankruptcy and the Triangle Business Journal warns that taxpayers will have final responsibility if the company’s bankruptcy plan does not work.
Town spokeswoman Susan Moran said, “The Mayton was not in compliance with the development agreement with the Town of the bankruptcy filing,” and Memento Mori co-owner Deanna Crossman acknowledged that “we are current on one … but not the other.”