Commissioners agree to issue notice of default on promissory note for Marriott Hotel developers

Highland County commissioners Terry Britton, David Daniels and Brad Roades agreed to issue a notice of default on a promissory note for the long-discussed Marriott Hotel project in Hillsboro during their Wednesday, April 8 meeting.

Commissioners voted 3-0 to sign the letter at the recommendation of Highland County Economic Development Director Julie Bolender.

“We have listed in there the steps that have led to this default, and I believe it's time to secure our investment and to let them know that,” Bolender said. “The letter that they sent on December 6, 2023 stated that with this loan from us, that they are ready to commence construction, and here we are, well over two years later, with nothing done. This money was to be spent on the construction of the hotel, and as you're aware, nothing has happened.”

As previously reported, commissioners voted in October 2023 to approve an open-end mortgage, Cognovit promissory note and loan agreement contract with LEO Capital Investment LLC in the amount of $1 million for the planned Marriott Hotel project in Hillsboro. At the time, Bolender had said that the plan was to “take the $500,000 that we were awarded from Department of Development, add that to our revolving loan fund, and then we would have an agreement then with the Leo Capital Investments organization for the loan for the entire year.”

However, the letter to developers says “it is not clear that the proceeds of the note have been used for payment of costs relating to the project.

“A prior meeting was held on August 5, 2025 to address the County’s concerns with the lack of any work on the project and at which time you were provided a benchmarking template to report on efforts toward completion,” the letter to developers says. “There was not followup or return of information to the County from the borrower. As of the date of this letter [April 8], the project [has] not been started and there is no indication that any work [ever] took place.”

The project has been in the planning stages since 2019.

As previously reported, a week prior to commissioners’ vote, Hillsboro City Council members agreed to extend a separate promissory note for developers, in a reversal of a previous decision. That $200,000 promissory note, related to the issuance and sale of tax increment financing (TIF) bonds, was set to expire March 31 and is now extended to May 31, as hotel developers have identified a potential buyer for the bonds.  

“I believe the city of Hillsboro has extended their promissory note until May 31, which would give them time to sell the bonds that will be used for the infrastructure of the project, but that will be the end of their extensions for that portion,” Bolender said. “Our letter would take effect on May 8, so if you choose to sign, this will be sent to them today. It'll be the 30-day notice.

“We can revisit this if something does happen, as far as the bond sale, but at this point, I think it's time to put them on notice.”

According to the letter, after the 30-day notice has expired, the county “will have immediate right to declare the entire outstanding balance of the note due and owing in full, and to exercise any other default remedy in the loan documents against borrower and guarantor of the obligations, and the collateral,” plus legal fees incurred by the county “in addressing the events of default.”

Britton also pointed out, and Bolender confirmed, that the letter was both “the recommendation from our legal counsel and drafted by our legal counsel.”

The letter requests the hotel developers to reach out at their “earliest convenience to discuss the events of default described herein.”

In other discussion:

• Commissioners answered repeated questions by Highland County Engineer Chris Fauber on when they voted on removing a $1 million grant from the engineer’s truck barn project, as they officially took action on the deal Wednesday.

As previously reported, two Highland County commissioners and the county engineer engaged in a heated discussion April 1, as the engineer said commissioners decided to move a $1 million grant from the state’s One-Time Strategic Community Investment Fund, which has been earmarked for the truck barn project since June 2024, to use on improvements to the Highland County Courthouse. 

Fauber, and later Highland County Prosecutor Anneka Collins, repeatedly asked when the decision was made and whether it was voted on during a public meeting. A public records request from The Highland County Press later confirmed that “no board vote has occurred on the matter.”

Via resolution, and with no discussion Wednesday, commissioners voted 3-0 to “authorize the reallocation of funds and execution of the grant agreement for the $1 million One-Time Strategic Community Investment Fund for the Highland County Engineer’s Truck Barn to the Highland County Courthouse project.”

• At 9:15 a.m., commissioners conducted a bid opening for 2026 chip/seal projects on county and township roads.

The county received one bid from Miller-Mason Paving in the amount of $554,750.

Deputy Engineer Christian Dunlap said that the engineer’s office would review the bid and make a recommendation.

• Commissioners enjoyed a presentation by McClain FFA students and Agricultural Issues team members Aubrey Baldwin, Avery Murphy, Reese Roble, Maguire Ross, Kenna Shoemaker, Toree Wareikis and Hanna West, who attended Wednesday’s meeting with their adviser Madison Schumacher. 

The group performed their presentation — a skit they have memorized — for commissioners. This is the third straight year that members of the Ag Issues team have presented a skit, each on a different topic, for commissioners. 

At Schumacher’s invitation, Daniels asked several questions after the presentation, which the students took turns answering. Schumacher said the group is required to practice their skit around the community, while part of the contest also involves being prepared to answer questions on the spot. 

“We're actually headed to ODA [Ohio Department of Agriculture] next, so we're going up to Columbus today,” Schumacher said. “You primed them up for some good questions.”

• Commissioners heard from Nick Beatty of insurance brokerage firm Gallagher, who asked the county to consider allowing his firm to review their ancillary benefits, including dental, life, vision and disability insurance, for employees. Beatty said he could identify opportunities “not only to look to save money for the county, but there's also some programs that we can put in place for your folks that work here, that we give free to our clients.”

Daniels said he wanted to speak with the county’s current health insurance broker before starting such a review.

“One of the reasons I think that I have somewhat of a concern is I think that even on our health insurance side, I think that we have more claims paid and premiums paid this year,” Daniels said. “We might be exploring a number of different options, and I just want to make sure we do it in a kind of organized setting.”

Daniels added that they could reach out to Beatty “within a couple of weeks.”

• Commissioners made several approvals related to the records department and its building.

As previously reported, commissioners approved the purchase of floor sealer/paint, with materials estimated around $3,200, for the records storage building from Sherwin Williams April 1. At Roades’ recommendation, commissioners voted Wednesday to award the work to Precision Painting, which submitted the (significantly) lower of two quotes at $12,000, compared to SK Coating Systems’ price of $59,917. For striping, the quote will be another $2,800, Roades said.

In addition, commissioners voted 3-0 to accept the resignation of part-time records assistant Austin Neville, as they said the head of the department, Julie Wallingford, has also recently resigned.

“Julie is leaving us, we just don't know exactly when, and we posted the job,” Britton said. 

According to commission clerk Ashleigh Willey, commissioners will meet April 13 and April 14 to conduct interviews for the records storage position.

• Highland County EMA director David Bushelman was in attendance, as two items listed under “old business” on commissioners’ agenda in recent weeks affect his department.

As discussed April 1, Britton advised that Highland County Auditor Alex Butler “will be taking care of” ensuring Bushelman gets the appropriate payment at the time of property tax settlement.

“We haven't been consistent on what we’ve been doing,” Britton told Bushelman Wednesday. “By the resolution, we pay per capita, and it's supposed to be paid at settlement, tax settlement. That's what we're going to get into, instead of doing these things in the off times.”

In March, commissioners also said they were “going to revisit” a previously discussed proposal to implement automated external defibrillator (AED) devices for Highland County buildings. Britton asked Bushelman to come up with a revised cost breakdown and recommendation, including ideas for funding. Bushelman said that the next cycle for the Firehouse Subs Public Safety Foundation grant opens July 9 and that he would get more information for commissioners on the AED proposal.

• Commissioners again tabled a decision on repairing and/or replacing door parts at the Hi-TEC building, following damage allegedly committed by a disgruntled customer. During their April 1 meeting, Collins advised the board to file a police report on the damage before making an approval. 

Willey said April 8 that commissioners now “have to approve one of the quotes in order to finish up the police report” for the incident. 

As all three quotes obtained by Cierra Moore of the county’s maintenance department involved doing different work, Daniels said he wanted more time to “digest” the estimates before making a decision.

• Ethan Reynolds of Ohio Governor Mike DeWine’s office reported on several “big things” in the news across the state, including Ohio’s $65 million settlement with DuPont, which will lead to environmental funding in Belmont, Gallia, Lawrence, Meigs, Morgan and Washington counties; the recently opened application period for the Ohio EMA’s Ohio Security Grants; Holocaust Remembrance Day on April 13; and the recent Buc-ee’s opening in Huber Heights.

Reynolds also said that the state is “accepting letters for capital budget requests,” while the Statehouse is preparing to welcome local leaders and business representatives for the annual Highland County Day April 22.

On a related note, Willey said that the weekly commissioners meeting will be held Tuesday, April 21 instead of April 22 due to the trip to Columbus. 

• Bolender invited the community to attend an upcoming “Ohio Goes to the Movies” event, which will be held April 18 at 3 p.m. the Hillsboro Orpheum with a screening of “Despicable Me.” Similar events are being held in each county around Ohio as part of the America-250 celebration. Tickets are free and available online at the Visitors Bureau of Highland County’s Eventbrite page, https://www.eventbrite.com/o/120843260666.

“Bring your kids in their minion costumes,” Bolender said. “We will have a movie theater concession stand set up. It is completely free to attend. The library will be there, doing some activities with the kids. It should be just a really fun family day.”

• After their regular session, commissioners met in executive session with their legal counsel Brett Geary for negotiations/bargaining sessions with the sheriff’s office and a separate executive session to consider the dismissal of a public employee. They also met with Geary in regular session to discuss proposed policy updates.

Commissioners also made the following approvals, each by a 3-0 vote:

• A contract with the County Risk Sharing Authority for the county’s 2026 CORSA participation agreement.

• An Elavon credit card application for a new card reader at the Sheriff’s Office.

• A change order with Unger Construction for Rolling Acres Wastewater System repair/replacement. Daniels said it “deals with cleaning some lateral lines and doing some other work.”

• A change order with the OWDA for the procurement of grinder pump cores controls and appurtenances for Rocky Fork Lake.

“We have got in stock a number of controls that were bid and a part of the bid, but also some that we decided, after talking with EES [Environmental Engineering Services], that there are some controls that we need to change some of those over to,” Daniels said. “There are controls in place out there that we do not have a number of them in stock, so this will be a change order to allow that change in equipment.”
• An OWDA disbursement request from Mechanical Construction Co. Inc. for Rocky Fork Lake Wastewater Treatment Plant improvements.

• A special TSP proposal for the Highland County CCW ID system with Total ID Solutions.

• A resolution to grant authorization for the listed “then and now” purchase orders and authorizing the county
auditor to issue warrants for their payment.

• A budget modification within the 2000 Dog and Kennel fund in the amount of $1,500.

• A resolution to create the following line item within the 5030 Rocky Fork Lake Fund: Refund. Also requested is an additional appropriation from unappropriated funds within the 5030 Rocky Fork Lake fund in the amount of $6,500.

• A budget modification within the 1000 County General fund Board of Elections Budget in the amount of $33,461.72.

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