Wednesday, July 7, 2010

Downtown Hotel Questions

Downtown Greensboro Luxury Hotel Proposal PDF

Submitted on July 6, 2010
by Urban Hotel Group, LLC and Elm Street Center, LLC

...the balance in the form of owner equity
(acombination of cash, land contribution and deferred developer fee).
[GH - a bit less than $4,000,000]
PDF Page 3, Last Paragraph

What is the deferred developer fee?

How much cash is being put up?

How can the raw land
under a property that sold for $450,000 in 2002
be worth upwards of $4,000,000 in 2010?
The proposed development will be funded from private sources

PDF Page 27, first paragraph
What “private sources”?

…confirmation…that the proceeds from private activity
…can be used as leveraged debt.

PDF Page 29, (c)
“…can be used as leveraged debt.”?

Investor: To Be Determined

PDF Page 31
Do they still want a $6 million taxpayer funded parking deck?

Guarantors: To Be Determined
PDF Page 32
A 4% upfront fee for “HRV” plus 0.5% per year?

$26 million x 4% = $1,040,000 upfront fee plus $125,000 per year
plus legal and accounting fees
plus all fees charged by the “leverage lender”due at closing?

PDF Page 30
It will be a Wyndham, and its backers seem to have their act together
which appeared not to be as much the case a few months ago.

...For now, I hope they succeed.

Allen Johnson
Who and what is the/a ("Sub-CDE")?

PDF Page 29, first paragraph

Re: Proposed Luxury Hotel Greensboro

The developer’s projection of occupancy at the proposed hotel over the first five years
is highly unlikely to be achieved
given the recent occupancy levels achieved by the four hotels
that will be primary competitors of the proposed hotel.

The revenue per available room (RevPAR)
projected by HVS for the proposed hotels
is well below the level necessary to cover debt service
and a return on and return of the equity investment.

...Hotel values in Greensboro
are projected by HVS to fall -47.7% between 2006 and 2013.

W&R Hospitality Services, Inc, January 18, 2010
to Andy Scott

Where is the new opinion
that contradicts W&R Hospitality Services, Inc.’s January 18, 2010 opinion
to the City of Greensboro’s Andy Scott?

The proposed hotel would be located
...across from the International Civil Rights Center and Museum.

Joe Killian

If the hotel is in part dependent on Civil Rights Museum Attendance,
how has the Museum performed relative to projections?

Is Skip still the broker?

Avoid attempting to influence others
who are involved in making or administering a contract
on behalf of the public agency, even if you aren’t involved,
if you will derive a direct benefit from the contract. (G.S. 14-234 (a)(2)…
Board members should avoid impropriety
in the exercise of their official duties.
Their official actions should be above reproach.
…They should act as the especially responsible citizens
whom others can trust and respect.
…they should be willing to put the board’s interests ahead of their own.
Code of Ethics for the Board of Commissioners
of Guilford County, North Carolina
Is Deena and her boyfriend still in on it?
If they try and fail, I don't expect it to become an eyesore.

It will simply be a new building where there was none.
And some other purpose would be found for it ... maybe condos.

Allen Johnson
After our elected leaders let them take millions in fees?

1 comment:

Anonymous said...

"...Hotel values in Greensboro are projected by HVS to fall -47.7% between 2006 and 2013."....W&R Hospitality Services, Inc, January 18, 2010.

I bet the 2006 date is a carry-over from another report for a different project.