The Corporation of Hamilton has missed the deadline set to pay back the $18 million owed over the failed Par-la-Ville hotel project.

However, Charles Gosling, the mayor, said last night that the client now appeared to be “more understanding in terms of what we need to do”.

Mexico Infrastructure Finance’s legal team told the corporation last week that if it failed to settle the debt, it could sell the Hamilton Fire Station, the Chamber of Commerce building and the Custom House.

Mr Gosling said it was unlikely that MIF would seize any property at this stage.

He said repayment of the debt would have an impact on the ability of the corporation to provide services to the city, but added that he would do everything in his power to avoid job losses.

He told The Royal Gazette: “They have been accommodating and more understanding in terms of what we need to do.

“They are not pleased with the speed at which we are getting these things accomplished and neither are we, but we are trying to speed up the process as much as we can.

“The one thing I dislike about the whole process is that this guarantee is going to take us many, many years to pay off — it is going to be a 15-term loan and it is going to have an impact on the abilities of the corporation to do capital projects for a period of time.

“When I first got into office I had a staff meeting. I told the staff it was certainly not my objective to have any of the staff laid off because it was not the fault of the staff that got us in this particular situation.

“With regards to that, I am going to do my darndest to make sure that that does not happen.

“I want to save jobs and services because I want to make sure the ratepayer — even though there will be changes in our rates and service fees — I really want to ensure they get as efficient service that they are currently getting or that we can actually improve it.”

Asked whether MIF had made any claims over corporation property, Mr Gosling said: “No, but they made very clear that they want this situation to end as quickly as possible and we are trying to make that happen.

“I am certain that we can find a solution. We have a particularly good term sheet from the bank that we are dealing with.”

Corporation secretary Ed Benevides said he hoped that the situation would be resolved by the end of this month.

“We have been able to demonstrate how far we have got and what pace we are working at and, even as of yesterday, we had the banks, the Government and ourselves in the room.

“There are certain things we have to do legally but to speed it up we are doing a number of things in parallel.

“We would love to have it all wound up by the end of the month, that is what we are aiming for.”

On July 9, 2014, developer Par-la-Ville Hotel & Residences Ltd entered into a credit agreement with MIF to borrow the $18 million for a hotel in Hamilton. On the same date, the corporation entered into a guarantee of the loan and, as security for that guarantee, it provided MIF with a first mortgage over the Par-la-Ville car park.

However, that loan was later recalled, making the corporation liable for the $18 million owed to MIF with interest of about $3,450 a day.