Skirvin Financing Shakeup???
At least no big changes will occur and the project will continue. For a minute I thought the Skirvin Project would just become another blown promise. Fortunately, Weeman is keeping his promises and in fact bringing in a larger investor to replace the one lost.
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"Key Skirvin investor out, new money in
by Ted Streuli
The Journal Record
10/20/2004
FaulknerUSA wants out of the Skirvin Hotel redevelopment project, but a new investor plans to step in.
John Weeman, who heads Texas-based Partners in Development and assembled the members of Skirvin Partners, said an investor his company has done business with in the past has signed a letter of intent to take assignment of FaulknerUSA's interest in the project.
The assignment must be approved by the partners and the city, which Weeman said would consider the investor switch at a November meeting.
FaulknerUSA, a contracting company, had agreed to a $1.5 million investment in the Skirvin's redevelopment but was not the company hired to do the work. Weeman said the new investor had committed to invest more than had FaulknerUSA.
Weeman said the new money would come from a Dallas-based investment company that has backed Partners in Development hotel projects in the past. The company asked to remain unidentified until its participation is approved by the city, Weeman said.
"They're pretty sensitive about those things," said Weeman. "It shouldn't be a problem. It's solid, on track and the deal's in good shape. We're taking money out of a different pocket, but frankly, this pocket's a better fit for the project."
Oklahoma City elected officials voted to fund $18.4 million of a $46 million renovation, with Skirvin Partners buying the 93-year-old building for $430,000 and the city retaining ownership of the land. Marcus Hotels, which is a member of Skirvin Partners, agreed to manage the hotel.
"We really have a win/win situation in that we've had the benefit of Faulkner's experience in developing an innovative structure for the Skirvin redevelopment," said Weeman. "And we will have a new partner with substantial equity resources that will be a great fit for the project."
City Manager James Couch and Urban Renewal Authority Executive Director JoeVan Bullard said last week that the projected Oct. 1 closing date on the property was delayed because the project's financing was not yet in place and because the city wanted to pursue a low-interest federal loan to remove asbestos from the building. Bullard and Weeman said that an early January closing was now more realistic, but that the Skirvin would still open under the Hilton brand in the spring of 2006."
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