Friday, December 16, 2011

City rejected hotel bid that was $75.5 million and only needed $67 million in bonds

Looks like Jackson is going with the more expensive of two proposals for the convention center hotel. WAPT reported a few nights ago:

"Two companies met Tuesday's deadline to submit proposals to build a convention center hotel in downtown Jackson.

TCI, of Dallas, is one of the companies, but the name of the second company was not released..." Story

JJ was able to obtain a copy of the other proposal and posted it below. The other developer is Journeyman Austin, LLC. It listed three options. The two main ones were $75.5 million each and only used $67.5 million in Go Zone bonds. The bid is substantially lower than the one submitted by TCI. However, the consultant for Jackson recommended the higher bid, stating it was the only one that offered full recourse to the city. The TCI bid requires the sale of $90 million in Go Zone bonds.



One observation about the hotel deal. JRA's long-time attorney refused to sign off on the deal. Balch & Bingham, the leading bond law firm in the state, refused to engage the city of Jackson on the deal as well. Not a good sign. Not a good sign at all.

23 comments:

Anonymous said...

And then there's this, according to the CL:

"The documents show that the advisers receiving funds from TCI are:

•Malachi Financial Products Inc., which has served as a financial adviser to the city."

My, my. What a tangled web we weave.

Anonymous said...

Bond Daddy Porter was in town this week advising the Mayor. Santa delivering gifts early?

Anonymous said...

And Jackson wonders why the place is falling apart. How is this legal? Where are the Feds?

It would appear that the leadership is going to extract as much as they can before they sink the ship.

Anonymous said...

Hold on, gun-jumpers. Harvey said he would 'put on the brakes' if he needed to and Crudup, a man of the cloth, said he would 'never participate in anything illegal'. So.....at ease troops!

Anonymous said...

Huh? Did you read the proposal? It is what was described in the article. So the choice is a 99% leveraged company vs. diversely funded profitable company?

What are you smokin'?

Anonymous said...

Kingfish, please check the price of comparable projects in other cities. I don't know many of the details of this project, but I was told that the number of rooms is approx 300. Using that number and dividing into the $90 million gives $300,000 per room. Just a rough number but it would be an interesting comparison to a similar calculation of hotel projects in other cities. I just don't think this project makes economic sense.

Anonymous said...

Reading the title and the docs, you would know it is 304 rooms at a cost of $75.5MM and using a calculator you get $248,355.00 - nice try.

Anonymous said...

If you want a Motel 6 you will wind up spending $50k per Corporate room at an average rate of $54.00. Your B/E room nights is 926 nights

Using a little algebra, if you charge $195 to $295 per night (average for convention hotel room) you come up with $273,170 cost per room, more than this current bid is proposing and less than the TCI deal.

Given Motel 6 has Kept the Lights On for quite some time, I believe their ratio is probably a good estimate.

Anonymous said...

10:13,

Per the last sentence of KF's write up:

The TCI bid requires the sale of $90 million in Go Zone bonds.

-Nice try.

Anonymous said...

This areticle is about an alternative bid to the TCI bid of $90MM. See my previous post regarding Motel 6.

Anonymous said...

While it's cute to discuss the alternative bid, I think we all know what is going to happen here....TCI will get the project, the taxpayers will get screwed, and somebody's palm will get greased.

If you honestly think it's worthwhile dissecting the alternative bid, go ahead. It's only value is that it isn't TCI. It's filler. That's it.

Anonymous said...

Funny, but both were just rejected. Hmmmm. You think you know it all, huh?

Anonymous said...

Such angry little farts! Hell, it's Friday. Go buy a steak and take it home tonite. Maybe you'll get lucky.

Anonymous said...

10:07 was directed to the 90 mil bonds, not the competing proposal that will disappear-the actual room count is 309--how does that stack-up against other hotels. Seems very high to me. What would the rack rate be for a hotel that would have to support $291,000+ rooms?

Anonymous said...

12:32, what an angry little wuss. Hell, it's Friday. Take it up to Southaven, maybe Greg Davis will be around for you to get lucky.

meople said...

It's very simple this cities population doesn't warrant a convention center.... A hotel.... Or any heavy spenders to come and visit it...

Anonymous said...

But meople. The creative class needs life downtown in order to be, well, the creative class. Otherwise, as The Prophet warns, Jackson will experience severe drought, pestilence and lose another congressional seat.

KaptKangaroo said...

I've been thinking about this a lot today. Congrats KF on shining a light into the farce called "lets get GOING" with a a GoZone bond.

In the end, truth, facts, and hard work pay off; I'll let the song speak for itself.

Oh, and yeah, martinis are great.

meople said...

I would prefer to take the money and try to save just one precinct in the city. Overloaded with qualified police with generous pay and its on brand new jail and court... Let the rest of the city keep choking on its liberal puke and save one precinct and I don't care which one just let us know

KaptKangaroo said...

Meople that is what one might call rational thought. I commend you for putting that reco out there. You are right, there are very qualified police out there and they would chomp at the bit to save their precinct.

Anonymous said...

Screw your "prophet" 8:28.

We've got raw sewage pouring into Purple Creek and a water/sewer system collapsing beneath our feet. (Not a peep out of the JFP Harpy.)

We don't have the time or the money to pay for the second-coming downtown circle jerk being pushed by pollyannas like Ben Allen.

Kingfish said...

Shadow, I didn't approve your comments because you started accusing me of commenting under other names. I don't do it and every time you pull that crap, the comment will not be approved. Don't like it, deal with it.

Anonymous said...

With what King Harvey inherited development wise, it is amazing that NOTHING has been accomplished. Compared to 4 years ago, downtown is DEAD.

This project is now squarely in his lap. Set your clock.


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