Big Burke announcement

[VTKilarney]

We are getting a real soaking rain today. The good news is that it is not that warm, so hopefully it isn't doing too much damage.

 

[xwhaler]

We are getting a real soaking rain today. The good news is that it is not that warm, so hopefully it isn't doing too much damage.

Hoping for some snow on the back end tonight. Would like to show Catsup948 and OysterRiverColin the trees of Burke if possible this wknd.

 

[Masskier]

Just a quick update on a few fronts:

first, I've been around the construction on the hotel quite a bit. It appears as though the wood framing of the bottom two floors on the east side has begun. Large shipments of wood arrived yesterday, and it appears the manpower has shifted to that side. I would gather they are trying to box in the entire first two floors before hard winter arrives so they can move the majority of construction indoors. Also, there appears to me no shortage of workers or activity. It certainly wouldn't pass my mind that they are 'slowing down' at all, based on what I have witnessed.

Second, the skiing has been very good. The snow has been very soft but not overly wet. Up top there is a ton of snow and the skiing is even good on ungroomed trails. I was amazed since I sat down at town level during the long duration storm and most of it was (seemingly) rain. I imagine the rain today may harden things once it freezes but there is the forecast of 2-4" of snow tonight and then again tomorrow.

Lastly, everyone I have interfaced with, has been happy and helpful. From the lift attendants, to the ticket sellers, etc. Nice people, seem to be happy working. Then again, I'm not on the inside. But it's good to see people gainfully employed in the NEK and getting some income.

The hotel has been full speed ahead since they started construction back in May. At this point they are still ahead of schedule and will open next Dec. Why anyone would believe the Hotel is not fully funded is absurd. I mean, what would the reason be to start a $55 mil project without having the funds to complete it. It doesn't make any sense to build half of a hotel. Why would the State or the eb5 investors allow that? That would be a total failure, not only would the investors lose their money, but they wouldn't get their citizenship either.

So the Hotel construction is not slowing down.
The reason why the Construction is further ahead on one side Vs the other is because this is the most efficient way to build it.
The decision on Bear Den has nothing to do with the Hotel lol...

And everyone that says they care about Burke should be happy, because it is on its way to becoming a self sustaining 4 season resort.

 

[VTKilarney]

Why anyone would believe the Hotel is not fully funded is absurd.

This statement is both laughable and insulting to anyone with a modicum of intelligence.
Here is what has become public:
- As of April Burke was only 25% funded
- The Stateside project was delayed, and missed the delayed start date.
- AnC Bio was supposed to have broken ground this fall.
- Peak CM management was critical of the AnC Bio delay.
- The Newport Waterfront project fell apart.
- The Renaissance Block project Has not broken ground as of this point in time.
- Not a single stakeholder has made a statement indicating that more than 25% has been raised for Burke.
- Stenger has made statements indicating that competition for EB-5 investors has significantly increased.
- The Tram Haus investors made statements that might very well have deterred future investors.

A reasonable person, with this information, would be concerned about the status of the hotel. And that's all I am saying... that I am concerned.

I mean, what would the reason be to start a $55 mil project without having the funds to complete it.

I can think of a few reasons. One reason might be to keep up appearances while trying desperately to raise funds for other projects. Another reason may to be make the resort as attractive as possible to a prospective purchaser. I'm not suggesting that these are good reasons, but they are reasons nonetheless.

It doesn't make any sense to build half of a hotel.

Agreed. I don't believe that's really going to happen.

Why would the State or the eb5 investors allow that? That would be a total failure, not only would the investors lose their money, but they wouldn't get their citizenship either.

Could the state intervene? Can the investors?

You and I agree on one thing. It would be absolutely reckless and irresponsible to begin construction of the hotel without assurances that the entirety of funds are lined up for completion of the project.

We appear to differ on one important matter. I am of the opinion that there were insufficient EB-5 funds in place to complete the project at the time they broke ground. You apparently believe that these funds would have been in place.

All I can say is that each and every prominent businessperson in this area that I speak with, other than those with an interest in the hotel, shares my concern. Make of that what you will.

Masskier, for all of your stated connections, why don't you suggest to Stenger and/or Quiros that they confirm that the entirety of funding has been obtained? I can assure you that such a statement would go a long way in dispensing with the concerns that the business community has. What possible reason would they have to NOT make such an announcement?

 

[Masskier]

You said
"We appear to differ on one important matter. I am of the opinion that there were insufficient EB-5 funds in place to complete the project at the time they broke ground. You apparently believe that these funds would have been in place."

NO, you swore up and down that they didn't have the funds to start the Hotel. You even took Victory laps several times and insulted others that told you that the Hotel construction was starting in the spring. I'm surprised you don't remember that.

Your logic is flawed. Burke's hotel is a separate entity and has nothing to do with Jay or the Newport projects.

 

[thetrailboss]

The hotel has been full speed ahead since they started construction back in May. At this point they are still ahead of schedule and will open next Dec. Why anyone would believe the Hotel is not fully funded is absurd. I mean, what would the reason be to start a $55 mil project without having the funds to complete it. It doesn't make any sense to build half of a hotel. Why would the State or the eb5 investors allow that? That would be a total failure, not only would the investors lose their money, but they wouldn't get their citizenship either.

Are you sure about that?

And everyone that says they care about Burke should be happy, because it is on its way to becoming a self sustaining 4 season resort.

I hope so. But I think we all agree that there needs to be a major change in PR.

 

[thetrailboss]

Your logic is flawed. Burke's hotel is a separate entity and has nothing to do with Jay or the Newport projects.

Oh God here we go again. :roll: Yes, of course it is technically a different corporate entity, but you cannot deny that it is part of the big NEK EB-5 Initiative.

It must be raining at Burke.....

 

[from_the_NEK]

It must be raining at Burke.....

Pouring (at least below 2000').

 

[thetrailboss]

Pouring (at least below 2000').

Hence the latest go-round here.

Oh well it will snow again I'm sure.

 

[VTKilarney]

You said
"We appear to differ on one important matter. I am of the opinion that there were insufficient EB-5 funds in place to complete the project at the time they broke ground. You apparently believe that these funds would have been in place."

NO, you swore up and down that they didn't have the funds to start the Hotel. You even took Victory laps several times and insulted others that told you that the Hotel construction was starting in the spring. I'm surprised you don't remember that.

Your logic is flawed. Burke's hotel is a separate entity and has nothing to do with Jay or the Newport projects.

Correction. I did not believe that they would break ground because I did not believe that they had sufficient EB-5 funds in place to complete the hotel as of the time that they broke ground. I stand by that opinion. I will also point out that you have never disputed this - despite do so if you actually believed otherwise. So, frankly, it appears that we agree on the following: 1) Construction began without the entirety of EB-5 funds in place to finish; and 2) It is reckless to start construction under those circumstances. The only thing you have added to day is your opinion as to the latter.

 

[VTKilarney]

YBurke's hotel is a separate entity and has nothing to do with Jay or the Newport projects.

So you really expect us to believe that the fundraising people and procedures are completely distinct? Give me a break.

 

[BenedictGomez]

One thing is for sure, if the hotel IS fully funded, Stenger et al are the worst PR/marketers on the planet.

If you even suspect that there's an inkling of doubt, AND you are indeed fully funded, just put out a 2 paragraph press release and put the matter quickly to bed.

 

[mbedle]

According to this report - Burke has secured 100 million in funding for their projects. Not sure when this was written, but it discusses a June 2014 bill signage, which means it was prepared sometime after June 2014. So as far as the issue of if Burke has fully funded the hotel prior to breaking ground, who knows. But at least we know it is funded though completion. Also, wasn't groundbreaking for the resort on June 3, 2014?

http://accd.vermont.gov/sites/accd/...x G - Investments in Economic Development.pdf

 

[VTKilarney]

One thing is for sure, if the hotel IS fully funded, Stenger et al are the worst PR/marketers on the planet.

That is EXACTLY the point I am trying to make. When there are demonstrable issues with related projects, this is more true than ever. I can tell you with 100% certainty that their failure to do so is really starting to have ripple effects in the local community. Believe it or not, Masskier's dogmatic cheerleading doesn't seem to negate the concern that is out there.

 

[VTKilarney]

According to this report - Burke has secured 100 million in funding for their projects. Not sure when this was written, but it discusses a June 2014 bill signage, which means it was prepared sometime after June 2014. So as far as the issue of if Burke has fully funded the hotel prior to breaking ground, who knows. But at least we know it is funded though completion. Also, wasn't groundbreaking for the resort on June 3, 2014?

http://accd.vermont.gov/sites/accd/...x G - Investments in Economic Development.pdf

Did you not read the first line of the report?

Below is a highlight of just a few of the economic development projects in Vermont that have
recently, or are slated to, received significant investment (more than $1 million).

 

[mbedle]

I did read the report and you will notice that "or are slated to" is included to list Mount Snow efforts to obtain funding. I doubt highly that the writter of the report would have used the word "raised" when discussing Burke and "being sought" when talking about Mount Snow.

Did you not read the first line of the report?

Below is a highlight of just a few of the economic development projects in Vermont that have
recently, or are slated to, received significant investment (more than $1 million).

 

[VTKilarney]

I did read the report and you will notice that "or are slated to" is included to list Mount Snow efforts to obtain funding. I doubt highly that the writter of the report would have used the word "raised" when discussing Burke and "being sought" when talking about Mount Snow.

The report is poorly written. If it were indeed correct, it states that Jay Peak did not raise anything through EB-5 after 2012, since as of late 2012 they had reported raising $275 million. Maybe that's true, but I should hope it isn't.

 

[VTKilarney]

Here is an interesting tidbit from the October Vermont Business Magazine regarding the status of the Burke hotel:
Q Burke Mountain Resort:

75% of the steel installation is complete. Wood construction will begin in 2-3 weeks.
Paving will begin on a portion of the Toll Road that runs up to Mid-Burke Lodge. A new road will be built to the new hotel and parking lot. Both will be paved.
At present there are 100-200 employees on the job each day primarily doing concrete work. As the project goes forward, the number of workers on site will increase to approximately 400.
Jerry Davis, President of PeakCM Construction and general contractor for the 180,000 square foot hotel and conference center, reports the project is ahead of schedule.

They also said that work would start on AnC Bio in October, for what it's worth.

 

[thetrailboss]

One thing is for sure, if the hotel IS fully funded, Stenger et al are the worst PR/marketers on the planet.

If you even suspect that there's an inkling of doubt, AND you are indeed fully funded, just put out a 2 paragraph press release and put the matter quickly to bed.

Historically Stenger has had one of the most well-oiled PR machines in the industry. So what does that tell you about how things are probably going?

 

[VTKilarney]

According to this report - Burke has secured 100 million in funding for their projects. Not sure when this was written, but it discusses a June 2014 bill signage, which means it was prepared sometime after June 2014. So as far as the issue of if Burke has fully funded the hotel prior to breaking ground, who knows. But at least we know it is funded though completion. Also, wasn't groundbreaking for the resort on June 3, 2014?

http://accd.vermont.gov/sites/accd/...x G - Investments in Economic Development.pdf

The link is to an appendix that is attached to Vermont's CEDS. The draft CEDS was posted for public review on June 1, 2014. The governor signed off on the CEDS in July. If we are to believe that the prospective clause in the appendix does not apply to Burke, and we believe as true Stenger's comment in April that Burke was 25% funded, this means that between April and July Burke raised approximately $73 million in EB-5 funds whereas only approximately $27 million had been raised prior to that time. (This assumes a $108 million project, as has been repeatedly stated.)

If this is indeed the case, as the appendix would have us believe, I am truly shocked that Burke has been so tight lipped about this phenomenal achievement. I'm especially shocked since Stenger spoke with the Burlington Free Press in an article that was printed on July 18, 2014. The article was about Stenger pushing back after the Pomerleau debacle. He made no mention in the article that Burke was 92.5 percent funded. As a matter of fact, he gave no indication at all how much Burke was funded. He did, however, specifically state that AnC Bio was 75% funded. Seems like a real wasted opportunity to me.