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« Summer plan | Main | Inquiring minds want to know »

Jul 07, 2010

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Tim

Well so what does everyone think about this new plan? I figured Wyndham would be the potential flag for the hotel given the fact that the hotel group sponsor's our PGA Tournament. I guess It might not be a bad Idea for Wyndham Championship offices on Greene Street to relocate to the office space in the new downtown Wyndham Hotel.

Steve Harrison

That was quick, Tim.

Kim

Do they have to reapply for the $26 mil recovery bonds at the state level?

Tim

I don't know how they have to go about reapplying. But the bond authority now has the information its been wanting to make a decision on the project, which is a commitment from a bank to back the bonds. That means Urban hotel Group has proven to the bank its hotel project is feasible. Scaling it back to 180 rooms helped. I look forward to seeing this 10-story hotel become a reality. It should improve Greensboro's little skyline a bit.

Spag

Nice to see Tim back. He only seems to show up when this particular project is being discussed and refuses to tell anyone who is paying him for his lobbying efforts.

Steve Harrison

"...it will fly the Wyndham flag."

Maybe some of you finance gurus can answer this: considering that Wyndham just borrowed $250 million earlier this year, what kind of exposure would their (possible) default on such have on this particular hotel?

Would this be some sort of franchise thing, where Wyndham doesn't really own any part of this hotel?

Tim

I find it interesting that this new plan was revealed barely a month after Dennis Quaintance and Mike Weaver dropped their lawsuit.

RecycleBill

When will I finally get to drive my bulldozer downtown?

Joe Killian

The county bond authority approves it, it goes to the local government commission, the county commissioners hold a public hearing on it.

Then, if all goes well, they get the bond financing.

Kim

So the bond money is still available, even though the "dead line" has passed?

Mick

I feel your pain Tim. For those who are keeping score....

The "what is your real name" round starts at the conclusion of the "paid lobbyist" round.

Tim

Well this hotel is a lot more feasible now. Reducing the rooms from 200 to 180 saved the $8 million although i'm not sure why the new proposal is now taller. The room rates have also dropped dramatically starting at $159 in the spring of 2012 and rising to $190 by 2016. Earlier projections showed the room rates well above $200 a night.

from business journal

"HVS Consulting and Valuation Services, which prepared a report for Greensboro officials in January that cast doubt on the hotel’s viability, ran another study on the revised plans and show a projected occupancy of 47 percent in 2012, up from 38 percent, and reaching 60 percent by 2016, up from 48 percent. Based on those occupancy projections, plus estimates of food and other sales, the hotel would earn a $1.2 million profit its first year rising to $3.3 million in 2016."

Tim

Kim I think they are applying for bond money allotted to the state, The deadline they missed was bond money allotted to the county if i'm understanding this correctly. Since the state has not used up all its bond money, it will continue reviewing application until December 31st of this year. I think some of the people from the business journal ranting about how this hotel would never get built is starting to eat some crow.

Bubba

Is there any further evidence of an actual marketing plan that avoids being labeled make-believe?

Ed Cone

SH -- my understanding is that flag deals of this sort do not involve a financial investment by the flag company.

Don Moore

If this is such a deal, let private funds do it. At some point (hopefully sooner than later), everyone will realize that government financing is nothing more that taking the public money with overhead (and mostly ineffective) skim.

If the government make it profitable for investors to invest again; we would get growth and more taxes. It worked for JFK.

glenwoodobserver

And Alston and Ole Asheboro neighborhood still part of the deal?

Andrew Brod

Again with the "government financing"? Didn't we go over this point again and again the first time around? Or has something changed from then? If not, then this project will be privately financed.

Second, "it worked for JFK" because (a) his proposed cuts were from marginal tax rates so high (91% for income over $400K) that they'd make a Tea Partier's head explode, and (b) he didn't propose them as the economy was struggling to recover from a deep recession.

(Conservatives love the JFK example, but not all of that story fits their narrative. For example, JFK wanted to tax gains from certain sales at the higher income rate instead of at the lower capital gains rate.)

greensboro transplant

private funds. glad that's the case.

i'd hate to see my tax money go to cover bad loans. lol.

triadwatch

welcome back tim we had missed your pom poms

David Hoggard

He's a one trick pony
He either fails or he succeeds
He gives his testimony
Then he relaxes in the weeds
-Paul Simon

downtowndiane

I am still in favor of a high-rise hotel at the corner of South Elm and Lee streets. It seems like an ideal way to encourage the enhancement and improvement of Lee Street from Downtown to the Coliseum area and the roads from the interstate highway into Downtown. A tall building at that corner would look good in the area, have a grand view of Greensboro and It would be a straight shot to Downtown and the Coliseum.
An hourly (or more often) public shuttle from the airport to the Coliseum area and the Depot would improve the tourist and business opinion of Greensboro. I call it a shuttle because many southerners think it is beneath them to ride a "bus." (Sematics and Political Correctness seems more important these days than practicality.)
Oh well, I have obviously been out-voted by the "rulers" of Greensboro and Guilford County.

Tim

looks like we will know by Tuesday if the hotel project moves forward

http://www.news-record.com/content/2010/07/14/article/proposal_for_hotel_is_ready_to_review

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