Plug pulled on PC hotel financing plan - The News Herald
PANAMA CITY — Developers of a proposed downtown hotel have withdrawn their application for federal loan guarantees and are reconsidering their options.
Lacy Curry, managing partner of Massalina Investments, said Friday he spoke with Mayor Greg Brudnicki and County Commission Chairman Bill Dozier to advise them of the decision to no longer seek funding through Housing and Urban Development's Section 108 loan guarantee program.
Options available include a lower scale development or doing nothing, Curry said.
"Many downtown redevelopment efforts lead with an upscale hotel and meeting center," Curry said in an emailed statement. "Such projects lead the market, are difficult to finance and require the resolve of the community as well as the developer to be successful. That, in substance, is what we were trying to do."
That the developers decided to stop pursuit of $25.3 million in loan guarantees for the $39.5 million project doesn't come as a surprise. City and county officials had concerns about who would be liable for the loan guarantees in the event the project failed.
A presentation last week from the Department of Community Affairs indicated there were concerns on the state level about whether the project was feasible and if it qualified for the program.
While there wasn't much support for the loan guarantees, local officials said they supported the idea of a hotel downtown because of the effects on revitalization.
Whether Massalina Investments is the one that builds it, Curry said a downtown hotel could have a big effect on the area. He suggested that even if the property isn't used for a hotel, it eventually will be developed.
"Revitalization will lead to the success and support of many businesses," he wrote. "We hope Panama City recovers and grows so that we can benefit along with others, instead of trying to lead the resurgence of downtown."
28 Aug, 2011--
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