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Originally Posted by Cro Burnham
ok, you got me, i was being unduly obnoxiously snarky, as is my habit, and sounded like a dick. my apologies. the JV comment was particularly stupid and i hereby withdraw it. my ass has been appropriately smacked.
what's the other $42 million? you are seeking a $33 million hud108 loan to be repaid by the TIF? or,in addition to the TIF, a separate hud108 subordinate loan not collateralized by the TIF?
if the hud108 is subordinate to $100MM plus million in senior debt and not secured by the TIF cash flow, the city is seriously going out on a limb. If I recall correctly, for example, the city had to take a major haircut with a similar structure at the Ritz.
where is the remaining $9 million coming from?
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First, I would like to set the record straight; I am not a billionaire. I am also not at liberty to disclose all of the funding sources as one has a non disclosure without written permission from the grantor. After the TIF passes there will probably be more formal announcements.
Don't confuse me and how I do business with anyone else please and definitely not the Ritz. I am aware of what happened with the HUD 108 loan there. Yes it is subordinate to the bank loan and no it is not supported by the TIF. The bank loan as a percent of project costs is low by comparison to historical loans to hotels.
I would like to add by the way the every new build hotel that has ever happened in Philadelphia has received substantial grants and loans like HUD 108 and RACP or IFIP. To the best of my knowledge they ALL have received in excess of what this project is getting as a percent of the total project cost.
I'm signing off now until we get through the final TIF approval. There has never been one introduced and not approved but I don't want to be the first.
P.S. The State and City think it is a high priority to support the convention center they spent nearly $800M expanding. There are not enough rooms to fully utilize the convention center and 28% of the business the center loses is because of lacking hotel rooms generally and a big box hotel specifically.