White Lodging is in a downward spiral and spinning out of control by some accounts, and they’re blaming it on the undeclared recession.
From a local TV station:
Officials with White Lodging Services, the hotel builder, say construction on the hotel could begin by May of 2009, but only if the company can secure the proper financing.
During Tuesday’s meeting of the Fort Wayne Common Council, White Lodging official Dino Yiankis admitted that the company has put 14 projects on hold because of financing problems, but he says the Harrison Square project is not among them.
Bullshit. More promises backed up by what? Nada.
Tom Smith put it right, “patience is running out”. No, it has ran out. It’s time we kicked their ass out and made the land available to other developers that actually have a vision, and a plan that doesn’t involve subsidies.
Where the hell is master lord-almighty Graham Richard? Too bad we didn’t have a truthsayer on city council when this shit went down.
AWB
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We actually had 3. Smith, Shoaf, and Schmidt consistently questioned how the project was put together and pointed out the numerous outs both Barry Real Estate and Whitco had and how the City had not protected itself or gotten guarantees that the private sector would make their investment. None of these contracts are cross collateralized and most people don’t even realize that Hardball Capital gets to use the ballfield even if the parent company [Barry Real Estate] doesn’t build the condos or retail space.
they’re just prolonging the inevitable, No Hotel. White Lodging getting a loan for construction is a convenient excuse not to do this. If they can’t get a loan then they must not be doing very well themselves and use the economic times as a reason to not do this.
We really didn’t NEED council to have truthsayers…as I recall, we had a MAJORITY of the CITIZENRY that took up THAT mantle…
And told them it was a “bad idea”.
And NO ONE LISTENED TO THEM (us).
Amazing.
(and the hits keep comin’)
Bill,
Obviously a good deal if you can get it. $5M for a new ballpark and all the concessions into an operating fund to maintain it. Yet we will all get stuck with the bill when the bonds come due with the major billpayer (the hotel) out of the picture.
I’d be interested in what you think we (the average citizens) should do to force a solution. I personally think we should hold the statium hostage and make Hardball intervene to make the project whole before they use the facility. Certainly we can cry distress as has White Lodging. Is there a remedy for White’s failure to perform?
Just a thought.
John,
Unfortunately If you hold the stadium hostage it just makes it worse. Then you have a pretty hole in the ground that just collects expenses. The public’s money has already been spent. This was always one of the major concerns because of how the deal was structured. As far as the $5M is concerned in the final agreement The $5K that Hardball was to contribute was changed so that instead of cash it could also be in kind services or a combination of the two, I don’t ever remember hearing that in any of the presentations. I have asked on several occasions about their contribution and to the best of my knowledge only about $1.4M in in kind has been received. If part of that $1.4M is the $1M construction management contract that the city gave them or not I don’t know.
As far as White Lodging they do have an out in there contract based on any significat changes to the project. I would probably consider not building the condos and retail significant.