$6 Million gap-GREG Leatherman

The Journal Gazette reports that

[Greg] Leatherman previously said the city and hotel developers were working to close about a $6 million gap in finances for the project. He said this incentive will help fill that gap, and the developers are working to redesign aspects of the hotel to reduce costs. The hotel will still be a full-service, business-class hotel with an urban design, Leatherman said.

So the Harrison Square Park Project has begun to increase in cost before the first building touches the ground.

In the memorandum of understanding – basically a non-binding contract – with Acquest Realty Advisors and White Lodging Services Corp., both the city and the two hotel developers agreed to “use their best efforts to execute a development agreement by May 31.”

(bold added)

And Leatherman and crew has partnered a deal that $2.5 of the $6 million will come from the Grand Wayne Center Convention Center. The Hotel is protected from demolition cost, the Hotel is granted a parking garage paid for by the taxpayers, what more does this group want?

So where is the other $3.5 million coming from?

The Memorandum of Understanding for Hardball Capital to commit to the deal is the requirement of a HOTEL.

The memorandum with Hardball calls for construction on the project to begin by Sept.1 or Hardball would have the right to pull out of the development.

The memorandum with the hotel said the two sides would need to determine how much parking revenue would go to the hotel, and the city would work to allow the hotel to capture some of the innkeeper tax it generates. Brody declined to discuss specifics of the ongoing negotiations.

( bold added).

Is the HOTEL now making demands on the city based on this requirement by Hardball Capital? Or is the city trying to justify going into the pocket or coffers of other entities of the city to get additional money beyond property taxes to fund this project?

I am thinking that if the TIF funds are restricted or limited to certain projects, which comes from the taxpayers, the city will need to get the funds from elsewhere.

So, I am thinking that the city and county has created an illegal consolidation of certain entities. This would eliminate the public hearing or loudmouth opponents of the shady dealings that surrounds the Harrison Square Park Project. The need for a cooperation agreement among these parties of a few would be more easily able to siphon off funds to support the Harrison Square Park Project without going to the public. Now what would these fake consolidation of entities be?