WORCESTER – The City of Worcester will pay Hilton Garden Inn $12.5 million in a settlement agreement with Fargo Management LLC in the skybridge lawsuit from 2012.

“By reaching a settlement the City has been able to resolve a large liability that had been ongoing for 12 years,” said City Manager Edward M. Augustus, Jr. “We’re looking forward to putting this situation behind us.”

In 2016, the Superior Court ruled that Hilton Garden Inn was entitled to two skybridges being built between the Hilton Garden Inn, Major Taylor Boulevard Garage and the DCU Center. Additionally, the ruling called for monetary damages for failure to have the skybridges for a 10-year period.

The construction of the bridges would have cost the City $15 million and another $10 million in damages — a total of $25 million if the case had not been settled.

Now, the $12.5 million will be repaid over five years (six fiscal years). A down payment of $1.5 million will be paid upon settlement with an $11 million balance in principal payable in five equal installments of $2.2 million (July 2018-July 2022).

The agreement also includes the hotel to receive 15o guaranteed parking spaces and 150 reserved spaces in the Major Taylor Boulevard Garage and the agreement will be extended another ten years until 2037.

Fargo Management LLC will begin payment to the City for the parking spaces immediately at a rate of $15,000 monthly for 2018 with increases of three percent per year for a period of 20 years. Fargo will also put a digital sign on the UNO façade at its own expense subject to permitting.

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