Sunday, November 06, 2011

Pere Hotel Expansion Insights

Now that the deal is underwway, I hope it works out over the time frame of the borrowed money.

Thanks for your reply, Dan.


Hi Merle:

Did not have a chance to reply to you sooner, sorry for the delay.

I voted against this deal until this past Tuesday. The deal is not perfect but according to Patricks numbers, it will sustain itself. I took his analysis one step further and used my own worst case scenario of 50% occupancy and room rates at $100 night. It still sustains and pays for itself WITHOUT using any sales tax dollars. The items that will pay for this are the property tax(developer agreed to not contest), H and R taxes. Plus, the $9 mil developer fee has gone away and the developer makes his money from the operating profits of the hotel.

Call or write me anytime, thank you

Dan Irving

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