Hotel Comments Don’t Add Up
Posted by Jeff Pruitt - 11/18/08 @ 11:32 am - Filed Under Featured, Local Politics
I think most readers probably understand that the downtown Courtyard by Marriott is the linchpin to the entire Harrison Square project. So it should be of some concern to everyone that statements coming from the hotel developer (via Fort Wayne News) and the Redevelopment Commission don’t mesh.
Here’s Greg Leatherman speaking on behalf of the city:
He said the developer has already acquired long-term financing for the project but is still searching for short-term construction financing. He said the developer intends to meet with several banks about the project this week.
But that’s contradicted by White Lodging:
I asked about financing and Yiankes stated equity financing was in place, but the current financial environment was preventing them from obtaining a construction loan. He blamed it on the fact that most lenders are in a holding pattern until some of the new federal bailout programs are finalized.
He stated they only had one interested lender, and they were planning on taking the application to the loan committee in about two weeks.
So which is it? The city claims they are meeting with several banks but the White Lodging spokesman says they only have one option. This kind of discrepancy is exactly why council needs to bring White Lodging to the table - something council President Tom Didier told me he is working on for a December meeting.
There was another discrepancy between the city and White Lodging. Here’s Leatherman speaking for the city again:
The city’s contract with the developers requires it to be open for business by April 2010.
That end date means construction has to begin by the end of this year, Leatherman said.
The commission earlier this year approved moving the required construction start date from Nov. 1 to Dec. 31.
“They are still optimistic about having it going by that date,” Leatherman said. “Obviously, we’d want them to get started right now.”
And here’s what White Lodging says:
He said they have high hopes they would succeed with this lender within 30 days, and construction could start within 30 days of closing on the loan. If they failed with this institution he said it would most likely be spring before they could get a loan, and construction would start soon after.
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4 Responses to “Hotel Comments Don’t Add Up”
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you’re using Fort Wayne News as a credible news source?
uhg!
Kevin,
I have no reason to doubt that FWN spoke with the hotel developer - something the JG was unable to accomplish before they went to print.
And frankly I don’t think the city is a credible news source…
Kevin,
Look at Kevin Leininger’s story, he states basically the same thing that FWN stated in their post.
[...] not sure where Leatherman got his data about them meeting with numerous banks but it sounds like that information is factually incorrect. [...]