With politics behind him, the developer of a Hyatt hotel bordering the Augusta Common puts the future of the project in the hands of financiers today.
Cortland Dusseau, the managing partner for Alabama-based Legacy Hospitality LLC, told the Downtown Development Authority of Augusta on Thursday that the $25 million project has been designed and will be presented to bankers.
The eight-story, 139-room Hyatt Place will sit on Reynolds Street across from the proposed trade, exhibit and event center, which was put on hold for several months last year while the Augusta Commission debated the TEE center.
"We'll get started as soon as the bankers say OK," Dusseau said.
Sixty percent of the project financing will come from bank loans, he said. Legacy will put in 20 percent of the capital.
The rest of the financing would come from New Market Tax Credits, a program of the U.S. Treasury in which investment money is funneled to projects and investors who receive federal income tax credits on a portion of their investment.
"We're updating our feasibility study. Last year, when we did a study, it was positive. And things have gotten better in Augusta since last year. The numbers from last year's study were strong enough to support the financial requirements that the project has," Dusseau said.
DDA officials said the groundbreaking would happen in June, a month after ground is broken on the TEE center. It will take a year to build the Hyatt and its 106-space underground parking deck. The project also calls for a three-story office or commercial building at the corner of Reynolds and Ninth streets.
The hotel will employ 70 people.
Okay, so where are all those posters that stated this would never resurface after the TEE center was approved????????????????????????
I do see they have to get the loans first, but maybe It will happen.
By the way, where is the sale you said would happen in Janurary for Ft. Discovery? Again, Ft. Discovery would have made a good TEE center at a fraction of the $100 million that's going to be spent on the TEE, Laney-Walker give-away. That's a lot of debt for future Augustans to pay.
Riverman, as you know Mergers take time. I never stated the sale would happen in January but that the Merger would and it has. Where could Channels 6 and 26 possibly relocate??? Thats your answer.
What would you propose to do with the steel support beam in the middle of Discovery during a basketball or volleyball match?? Play around it?
As for 100 million in debt, your flat wrong, we are bonding 8 million of Laney and 15 for the TEE so thats 23 million of debt.
Commissioner Bowles, Riverman said that $100 million would be spent on the TEE Center and the Laney-Walker rehabilitation. He did not say $100 million in debt. Since tax money is going to those projects for many years into the future, I think Riverman is underestimating the spending total.
LL He stated that " $100 million that's going to be spent on the TEE, Laney-Walker give-away. That's a lot of debt for future Augustans to pay."
Oh, come on, Joe, you knew what I meant. Or maybe your accountant, bean counting, tunnel vision didn't keep up with my abstract reasoning. Anyway, my bad if I wasn't clear. Thanks, LL, for clarifying.
So what is this about playing basketball in the TEE? I never thought it would be used for that, but I guess we would have to play half court in more ways than one. But for about 1-2 million in comparison to the other, not a bad deal.
Oh, can we build the new Holiday Inn a little mini TEE of some kind just to give the appearance that we are trying to keep things somewhat fair?
Joe Bowles said: "Riverman, as you know Mergers take time. I never stated the sale would happen in January but that the Merger would and it has. Where could Channels 6 and 26 possibly relocate??? Thats your answer."
Maybe this is just my fautly perception, but I thought you were saying in Nov. the sale of Ft. Discovery was imminent. I asked you what happened a few times and you said it takes time. It is now Masters' time.
As far as the merger of the TV stations, that happened a while back. It may happen that they move to Ft. Discovery, but I can think of lots of other places they could move to. One on Stevens Creek Rd, you know?
One last point for now. I wasn't the one saying the hotel would never happen. That was Emery.
But, if the banks don't loan them the money it may not happen yet although I wouldn't bet on it. They have the hook of a multimillion dollar TEE center they can build next to. Think of the VALUE IN THAT. I can see where the banks would loan to them, just because of the TEE. Sweet deal.
Hey...how much will Julian Osbon get for the land he will be selling to the purposed Hyatt Place developers??? How much did he pay for that land that he bought just before the Augusta Commons was announced?
TEE Centers all across the county are losing money...how does anyone know how much this will really cost and how will the taxpayers ever see a return on their investment?
Usually in a public-private partnership the private entity puts up a substantial part of the money - not the case here.
And in addition, the Hyatt Place (limited service version of a Hyatt Hotel) investor is looking towards "local" banks and tax credits to put the deal together....interesting. Perhaps another freeloader with his eye on the taxpayers purse. For every dollar our brillant commissioners give this project there will be that much less to take care of other necessary projects. And you know what happens then...they can't balance the budget so they solve the problem with another proerty tax increase.
There is no way this project will ever show any return on the investment of our tax dollar.
The Augusta Chronicle ©2012. All Rights Reserved.
