Big Burke announcement

[VTKilarney]

They are still taking reservations for December 11th. What gives?


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[thetrailboss]

Another interesting piece:

Davis says he has twice threatened a work stoppage at Q Burke in the past three months, and this time he might have to pull the plug if he can’t get reassurances from the state soon. In recent weeks, he has paid subcontractors out of his own pocket “because they weren’t going to make their payroll.”

And it sounds like things are going to get more expensive....

Late payments to subcontractors have also hurt the project’s budget, Davis says, because he has no choice but to impose a 12 percent late fee on Stenger and Quiros in order to cover the cost of the delays. Late fees will drive up the cost of the project by $100,000, Davis says.

And yes, work was stopped at the Hotel:

The developers recommenced construction of the hotel and conference center, which had been halted in 2014. Once the developers met certain conditions in July, they also had permission to solicit more investors.

The developers need to attract, or “subscribe,” 196 investors to fully fund Q Burke. As of August, Q Burke had secured investments from 45 immigrants, or about $25 million, and the developers extended the subscription deadline from July 13 to Dec. 31 to attract more investors, documents show.

And they've only raised $25 million so far.

By October, 38 new immigrants seeking green cards had invested about $20 million in Q Burke.

The developers must hold the new money in a separate escrow account, and the funds can only be released after a third-party administrator signs off on construction expenditures. Ultimate authority for payment approvals rests with Donegan at DFR.

As of Sept. 9, the Q Burke brokerage account had insufficient funds to cover the July requisition payment for construction work to PeakCM, according to documents from DFR. It’s not clear how many new investors had subscribed at that juncture.

NOT good at all:

At the heart of the conflict is Donegan’s “serious concern” about the way the developers have represented the facts of the Q Burke project, “especially since DFR and ACCD received repeated assurances from you and the Principals that the project was abiding by all conditions and restrictions.”

“By the end of the week, I ask you to send me a full written explanation as to the raising and disbursement of the ______ capital,” Donegan writes. “In addition to providing the answer concerning the investor funds prior to July 15, 2015, the deliverables listed above must also be produced before I will consider any expense payments.”

Stenger feels that the restrictions on how he can spend money, which do not include costs to promote the opening of the Hotel and to hire staff, are too restrictive.

 

[VTKilarney]

According to the Caledonian Record, they are still on track for a December 11 opening.


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[from_the_NEK]

They put out a call for local artists, craftsmen, etc early this past summer to submit their work for the new hotel. I submitted my photography for consideration but I have not heard a thing. Maybe they are waiting until the paint is dry before deciding what to hang on the wall?

From the VT Digger Article:

The delays have disrupted the work flow and orders for materials, fixtures and furnishings have been put on hold, Stenger says.

Well I guess that potentially explains lack of interest in my photos for the hotel. Right now they are just trying to get the wall painted.

 

[River19]

They better start ordering up the "Pardon Our Appearance" signs soon for the first few weeks of guests if they still open the 11th......

Or at least order one and have Jr take pictures of it with his iPhone and print out duplicates.....

 

[thetrailboss]

They better start ordering up the "Pardon Our Appearance" signs soon for the first few weeks of guests if they still open the 11th......

Or at least order one and have Jr take pictures of it with his iPhone and print out duplicates.....

 

[VTKilarney]

September real estate market report is out. Four condos sold in all of Caledonia county through the first nine months of the year. This is down 55% from the previous year-to-date.

 

[Big Wave Dave]

Trailboss- i read that a bit different. It said by August they had $25mm, and then by October they had 38 new investors. I inferred the "new" to update that August figure. In know Stenger was on a tear over in Vietnam or some such.

I also think the $190mm figure for Burke included the pie-in-the-sky aquatics and tennis center, The hotel alone is far less than that, so perhaps its fully funded (if my assumption above is correct).

Either way...my question now is... can Kingdom Trails run a ski area

 

[VTKilarney]

Trailboss- i read that a bit different. It said by August they had $25mm, and then by October they had 38 new investors. I inferred the "new" to update that August figure. In know Stenger was on a tear over in Vietnam or some such.

That's how I read it as well, although it was not clear.

Even if this is the case, that's about $44 million, which I believe is well short of the actual construction costs.

 

[Smellytele]

Waiting to hear from Masskier to get his spin

 

[River19]

Trailboss- i read that a bit different. It said by August they had $25mm, and then by October they had 38 new investors. I inferred the "new" to update that August figure. In know Stenger was on a tear over in Vietnam or some such.

I also think the $190mm figure for Burke included the pie-in-the-sky aquatics and tennis center, The hotel alone is far less than that, so perhaps its fully funded (if my assumption above is correct).

Either way...my question now is... can Kingdom Trails run a ski area

Lol. Start printing the "Ski KT" stickers.......

If memory serves me, I think the hotel alone was something like $55M give or take a few million among ponzi participants.....I mean friends....

 

[VTKilarney]

This article puts the hotel cost at $55 million.

http://www.news7newslinc.net/index.php/around-the-nek/burke/891-q-burke-hotel-shaping-up

 

[VTKilarney]

Waiting to hear from Masskier to get his spin

I'll save you the wait:

"I hear that the pool will be great!"

 

[thetrailboss]

Trailboss- i read that a bit different. It said by August they had $25mm, and then by October they had 38 new investors. I inferred the "new" to update that August figure. In know Stenger was on a tear over in Vietnam or some such.

I also think the $190mm figure for Burke included the pie-in-the-sky aquatics and tennis center, The hotel alone is far less than that, so perhaps its fully funded (if my assumption above is correct).

Either way...my question now is... can Kingdom Trails run a ski area

Yeah, honestly everytime we get a report from VTD the numbers change. I think it is fair to say that they have raised a lot of money and want to raise more I also think that the $192 mill figure is build-out as well.

 

[thetrailboss]

Well, the Hotel is...ALMOST...done. Get 'er done, get a new management team to make it work, and leave it alone.

 

[VTKilarney]

So the contractor is complaining about the state taking a long time to authorize the release of funds. Perhaps the contractor should be complaining about Stenger and Quiros, since the state only stepped in because of concerns about how the funds were being used.

 

[thetrailboss]

So the contractor is complaining about the state taking a long time to authorize the release of funds. Perhaps the contractor should be complaining about Stenger and Quiros, since the state only stepped in because of concerns about how the funds were being used.

Yeah, but that wouldn't be any fun now, would it?

 

[Big Wave Dave]

So the contractor is complaining about the state taking a long time to authorize the release of funds. Perhaps the contractor should be complaining about Stenger and Quiros, since the state only stepped in because of concerns about how the funds were being used.

what is interesting is the Cal Record omits any of Davis equivalence on who to blame and puts it right on the state.

If i was Stenger, and I had $20mm of fresh capital in the bank (i.e. funds that clearly have a point of origin and point of investment) and the state was not letting me pay bills, regardless of where prior funds had gone, I would be keen to blame the state as well. Espeically if a 3rd party administrator agreed by the state had said OK.



Also- if they could sign up new investors between when the issues/headlines first started to hit, and the end of October....then my hunch is they could finalize the funding too.

 

[VTKilarney]

New article in the Caledonian Record.

Stegner believes that the hotel will open on time. The contractor does not believe it will. The west wing will open before the east wing.

 

[River19]

I'm sure the definition of "Open" and the scope of the "Open" mean different things to different people.