White Lodging City Council Visit Postponed
Posted by Jeff Pruitt - 12/14/08 @ 11:57 am - Filed Under City Council, Featured
At a prior city council meeting, council President Tom Didier said that he would try and get a representative from White Lodging to come before council sometime in December. Readers will remember that White Lodging is the developer for the downtown Courtyard by Marriott hotel that has faced financing trouble and is likely to miss their groundbreaking deadline. Readers will also know that White Lodging hasn’t come before council yet and they aren’t scheduled for the final meeting either.
Didier informed me that White Lodging was unavailable for the Dec 9 and 16 council meetings and so he is now trying to reschedule their visit for sometime in January. There will be a new council President at that time but I’m sure whomever takes that role will be interested in hearing from White Lodging - especially if they still haven’t broken ground and would thus be in violation of their agreement with the city…
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21 Responses to “White Lodging City Council Visit Postponed”
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I really think we deserve an update before Council from White Lodging - even if it’s to confirm that there’s nothing to confirm. We haven’t seen White Lodging in front of the Fort Wayne public since February 21, 2008. The citizens are cognizant of the problems faced, but with all that’s riding on Harrison Square, we also deserve something in 10 months. (February was a joint appearance at the Grand Wayne Center with the TinCaps (Wizards) to unveil their new design for the hotel.)
I have made the argument that in that time, we’ve seen Barry Real Estate people in front of the City Council twice not even mentioning the countless other times we have seen them in our City. It makes me question White Lodging’s continued support of the project, especially with the out they have in their contract. The out being that if the other parts of the Square project aren’t built, they don’t have to follow through with the hotel. There’s really nothing to keep them involved, which is exactly the reason they should have been before Council to discuss the situation and assure us that they remain committed.
Again, I don’t think we’d hear anything earth shattering, i.e. secured financing, however, it’s now for me at least, a question of how committed they really are to the project AND the Citizens of Fort Wayne. After all, we have the most to loose if this project fails.
opps, should have been lose.
Ah don’t worry Stephen. The hotel is only the linchpin for the whole project. I mean if it collapses then we’re all stuck with a massive tax bill.
But don’t fret, Brody says they are committed and will get financing. It’s not that important - why shouldn’t we leave the entire deal up to one individual?
Well let’s be fair- no matter what they say, or when they say it, someone will find fault with it on this blog.
I’m sure they decided not to go before council because somebody from this blog might criticize them.
Seems like they owe us more than an annual update when we’re providing them a massive subsidy. Especially considering these market conditions and the exposure to the taxpayer…
“Well let’s be fair- no matter what they say, or when they say it, someone will find fault with it on this blog.”
Kevin: Isn’t it time for some of the “great minds” involved with this project to do more than “talk” about it? If the leaders of this project are going to fall back on their commitments and blame it on the “economic downturn”, they are no smarter that the “great brains that created the downturn it’s self!
“Actions talk- B.S. walks”
You are absolutely right, Kevin. However, the point of the discussion is that an update is required.
Required?
Is that in a contract somewhere?
Frankly, if I were White Lodging I would RUN, not walk, but RUN from this deal.
Not because I do not think it will work- but why fight such a negative group of people? Why invest money in a project that needs the support of the community to succeed, when a vocal minority remains so opposed to the project?
Here is the only fact anyone really needs to know- the stadium is going to open on time- we need to support the rest of the project- OR - we can just pay for the stadium ourselves.
The advantage to that, of course, is that many of you get to say “I told you so”….but you will still be writing a check just like everyone else.
“The advantage to that, of course, is that many of you get to say “I told you so”….but you will still be writing a check just like everyone else.”
Who exactly is writing checks other than the taxpayer. Hardball Capital and White lodging got cherry deals thanks to our “leaders”. The least they can do is report on how things are or arent developing as our partners in this scheme.
Its the only way we the majority can hold those who make such deals accountable. We only sound bitter because we feel taken advantage of by these companies and the people who supposedly represent our interests.
Kevin,
They are already going to be in default on the contract for not breaking ground on time.
I have been consistent in saying the hotel must not fail. But if the deal is in trouble or will be delayed or whatever then we should all know that.
And seriously what kind of hotel would close up shop because some people on a website complain? Besides if they are counting on people that live in Fort Wayne to make this hotel project a success then they are in real trouble…
When you put a community on the hook like this one has been, then yes, I think it’s required.
Let’s get something straight Kevin - don’t judge my motivation for wanting to hold them accountable. I have been a supporter of the project for quite some time. However, that said, it does’t mean that I approve of everything in the project. I think things could and should have been done in a better way to protect the City. I do not want this project to fail - I want success.
If the hotel is not realized, guess what? The revenues generated from that TIF won’t be enough to pay back the bonds which since they were backed up with our property tax revenue, guess what again, Kevin? The shortfall has to come from somewhere. Add in to this the effects of House Bill 1001 and circuit breakers and tax caps and we really don’t know what could happen. All that negativity negatively affects my life.
I’m tired of those in the community, obviously yourself included, that think someone’s against an entire project when they express doubts about certain aspects. Or demand that a partner in a deal present a status report - which frankly is the very least they can do.
I have been silent about my feelings for the most part and haven’t even begun to unload - so deal with it if I think an update is required - especially after what happened a couple of weeks ago with all the misinformation. Besides, it’s my right and duty as a citizen to stand up and have my voice heard and challenge when I feel the need arises. That’s what makes this country of ours great.
And, if White Lodging Services is that thin-skinned to take their marbles and go home when things get a little rough, we shouldn’t have gotten into a deal with them to begin with. And isn’t that the point of requiring an update? So we know whether or not they’re taking their marbles home?
And remember, when this project was first introduced, a poll was conducted in the first quarter of 2007 showing most surveyed were not in support of this project. I don’t know where the numbers are right now, but I’d be surprised if there’s been a shift or not. There probably will be an embrace from the community when it first opens, but remember, until that date, most were probably against it.
People have different reasons and motivations for doing the things they do. My motivation isn’t to say, “I told you so!” My motivation is to have a livable community long after the Harrison Square controversy fades away.
Stephen,
We are partners with several businesses- look at the tax abatements we hand out.
Why are we not asking them for status updates?
My point is simple- if White lodging were to appear tomorrow and say “we have funding AND are returning EXTRA funds to the city” someone on this blog would still complain.
According to the new Goldner-Brown abatement rules the abatements we hand out are reviewed.
Kevin,
Companies getting tax abatements are required to file annual reports showing they are meeting the conditions of the tax abatement. If they don’t, they can lose the tax abatement.
Reading these 13 posts looks like a small scale rewind of the $700 billion bailout…. Because you object to something then you are a bad person who only wants to harm the world.
The only reason White was in this deal was to make money…. Dahhh… they did not undertake this project to be nice to the people of Fort Wayne … So don’t try to sell me on the idea I am against Fort Wayne because some leadership decided to go crazy….
Kevin wrote:
“We are partners with several businesses- look at the tax abatements we hand out.
Why are we not asking them for status updates?”
If you think that compliance with a tax abatement is the same as compliance with the Hotel Definitive Agreement, something’s wrong. This is extremely more involved than a simple tax abatement. The possibility of failure in this project could taint our community in so many ways.
The amount lost in an abatement is money the City probably wouldn’t have seen anyway. The money needed to repay the bonds issued for this project, which is dependent upon revenues generated by the completed Hotel, have already been committed to by the City and will NEED to be repaid. We stand to loose a hell (can I say hell on a blog? Sorry Jeff if not…) of a lot more if the hotel isn’t built.
As I mentioned, direct your point about those who will always complain somewhere else - not at me.
Kevin
Its laughable to think that White Lodging is making their decision based upon what seven people using a variety of pseudonyms say on this blog. And, if they are, what kind of two-bit operation did we climb in bed with? I have said it before, but it bears repeating: the great irony of H Square is that if it fails, the people who raised legitimate concerns from the beginning are the ones who will be blamed for its failure.
White-Lodging Group is owned by a billinaire/part of network that traditionally invests in areas
hoping to make a fast buck. Looks like the White lodging investment group is backing out in this area. It’s not that easy to make a quick buck anymore, eh? AHhhh can’t keep a promise or commit to a project.
I saw it coming three years ago!
Jack of all trades on the City!
Kevin,
I could support the hotel by renting rooms all the time, but it would be just cheaper for me to pay more in taxes.
Seriously, the only way this hotel can be profitable is if another hotel fails. Can a failed hotel pay for the ballpark?
Robert,
What do you mean the only way this hotel can be profitable is if another one fails?
Is this because you believe we have too many hotels?
Also, Where was the OUTRAGE when IPFW got involved in the hotel business? A entity funded by TAXPAYER dollars getting in the hotel business? How is that working out? Why isn’t anyone calling for them to release their financial records?
Yes, I think there are too many hotels.
But I can explain the lack of outrage over the IPFW hotel.
1. The purpose of the IPFW hotel is to educate students who want a career in the hospitality business. It does not need to make a profit to succeed in that goal. But it might very well make a profit because it will save on labor costs by using unpaid students! Although I do wonder if the hospitality industry has long term growth potential in Indiana. I really don’t know, because maybe it does, maybe it doesn’t.
2. The IPFW hotel was proposed before HS.
3. IPFW is funded by the state and federal government. Many people’s philosophy towards state and federal money is this: “If we don’t waste it here, it will just get wasted somewhere else.”
4. The IPFW hotel is more than a mile away from the nearest pre-existing hotel. It could create the possibility of more conventions being held at the Coliseum.
5. To be perfectly blunt, the reason why I don’t get upset over anything IPFW does is because I really haven’t been paying attention to that place since I graduated. Some of my professors would argue that I haven’t been paying attention since I enrolled.
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