Instead of having 450 rooms, the team is scaling it back to a more appropriate size of around 155 rooms. The spa will be brought back, but will include a fitness club. The cumulative meeting space, which is more than 20,000 square feet, will be brought back to life, and will allow for all sorts of events and meetings to take place. The cloud room will be restored to its former glory, and patrons will be able to dine the night away on the rooftop. This will all be made possible by creative funding, Patton said.
“Brint owns a company called, Ryan Co., which is an international tax firm that specializes in creative tax structures. And that’s exactly what this project is. It’s a $56.2 million project, that when completed and when stabilized, has a valuation of about $35 million. So, you can imagine, six years ago, when we dove into this project, that going to a traditional bank in 2008 when the market had crashed and asking them to provide traditional debt-financing on a project that costs $56 million that was only valuated at $35 million, would be a pretty tough task to ask. On the flip side, when you go and try to find equity investors, there weren’t very many out there that were willing to take a bite out of that apple. So, we had to find creative financing sources.”
All of which are coming together. Much of the financing is based on historic tax credits, both federal and state, and new market tax credits. A large chunk, however, is the EB5 financing, which totals $24 million of the project funding. In a nutshell, the investors with the EB5 are waiting for proof of local support, which is where the 4B Sales Tax reallocation comes in.
Enter Mayor Allen’s part of the discussion.