The DoubleTree by Hilton hotel in downtown Youngstown made its second interest-only payment to the city on a $700,000 loan. The DoubleTree is the first downtown hotel in the city since 1974.

YOUNGSTOWN — Permitted last year by the city to restructure a $700,000 loan, the downtown DoubleTree by Hilton hotel made its second $8,451.28 interest-only payment to Youngstown.

Under the loan restructuring agreement reached in April with Youngstown Stambaugh Hotel LLC, which owns the hotel, it is required to pay interest of $8,451.28 twice a year for five years. It made its first payment in June and recently made its second payment as required by the loan agreement.

After the 10 interest-only payments over five years are made, Youngstown Stambaugh is required to pay $25,738.88 twice a year to the city for 20 years.

This allows the company to have until 2048 to pay the initial $700,000 loan with 2% interest. The business was initially given until December 2026 to repay the loan, but was granted the extension under the restructuring plan approved nine months ago.

The company will pay $1,114,068 to the city over that 25-year period.

“They made the second payment per the schedule,” said city Finance Director Kyle Miasek. “They are living up to their agreement. They made their payment to us.”

Youngstown Stambaugh — run by Pan Brothers, a New York City company — received the $700,000 loan in December 2016 and was supposed to start repaying it monthly starting in December 2019. It never made a single payment despite the city’s board of control allowing it twice in 2021 to defer those monthly payments.

The loan was supposed to be repaid in full by December 2026 with a significant balloon payment that continued to grow, because of deferments and failure to pay, to an amount close to $700,000 — the amount the company initially received from the city from the water, wastewater and environmental sanitation funds more than seven years ago.

The hotel owners’ agreement structure is similar to a loan of about $4.9 million the company owes to the state for the same project. The first payment to the state is due this month under that agreement.

The city in January 2023 created an Energy Special Improvement District that permitted the hotel’s bank debt, estimated to be $30.7 million, to be refinanced through a program that allows it to pay what is owed over 25 years from property taxes for making energy-efficient improvements.

The company had refinanced its bank loans a number of times before the ESID was established.

The debt repayment extensions give Youngstown Stambaugh more time to repay the money it owes on the hotel at 44 E. Federal St. The hotel opened in May 2018 at the Stambaugh Building and is the first downtown hotel in Youngstown since 1974.