Big Burke announcement

[thetrailboss]

The latest...I don't think this has been posted yet:

https://vtdigger.org/2016/04/08/state-regulator-q-burke-developers-ran-out-of-money/

And all you really need to know:

Vermont’s top financial regulator said delays in the opening of a Northeast Kingdom hotel occurred because the developers were running short of money.

Another classic:

In a communication from Feb. 12, Donegan wrote that the “project sponsors,” Stenger and Quiros charged 15 percent in construction management fees for the $50 million hotel.

The 15 percent construction management fee is on top of payments to the general contractor for administration of construction.

Secretary Moulton said in an email to VTDigger, “it is my understanding” that Stenger and Quiros charged a 15 percent construction management fee for the Jay Peak Resort expansion, which was also paid for with EB-5 immigrant investor funds.

[....]

The 15 percent fee is substantially higher than the industry average for construction management fees, which was 5.6 percent in 2014, according to a survey by the Construction Management Association of America. The range was 0.6 percent to 18 percent that year, the association says.

 

[thetrailboss]

Wow!

On Dec. 11, the day the Q Burke Hotel was originally slated to open, Stenger texted Moulton.

“Pat I realize your team is busy,” Stenger wrote. “But Rome really is burning. Hundreds of hotel employees can’t work and critical equipment is not available to us. IT especially. 250k needed and without payment not delivered. 3,7 million [sic] is in the escrow account. More than enough to get us where we need to be. Please if you can authorize some payment today we can get some progress here.

“It is a real crisis,” Stenger continued.

A few months later as he was negotiating an agreement with PeakCM over the Certificate of Occupancy, Stenger texted Moulton again on Feb. 3, demanding authorization of funds.

“The contractor will release the CO to us but only if the retainage funds that are in this last pay app are authorized to be released,” Stenger writes. “I have been told that the pay app is at your agency now and was just sent yesterday. If that pay app can be authorized then I believe the CO will be released.

“Wearing my ski operators hat if I don’t get that hotel open for presidents week we will have a very difficult time,” Stenger writes. “The past few pay apps you were able to turn around quickly. I am asking consideration here. If we don’t get CO this week we will need to begin canceling presidents week vacations which are 250k worth of business that is urgently needed for that property and the partners who invested thinking the property would be open by now. We are 2 months late. Missing presidents week would be a huge blow.”

Stenger’s texting intensified over Feb. 4, 5 and 6, as he demanded approval of the December pay application. Moulton on that Saturday said she needed “to connect with DFR and the AG’s office. Tried yesterday but couldn’t. I will know more Monday.”

 

[fbrissette]

This is getting more and more pathetic. They're killing it with land sale, EB5 management fee, and now construction fee.

 

[thetrailboss]

This is getting more and more pathetic. They're killing it with land sale, EB5 management fee, and now construction fee.

And yet have "no money" to contribute on their own (?)


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[burski]

This is getting more and more pathetic. They're killing it with land sale, EB5 management fee, and now construction fee.

But they are here to save the northeast kingdom and creat jobs. This is all for the people.

 

[VTKilarney]

That was an absolute depressing read. I've said before that, in my opinion, Quiros is not in the business of running a ski area. He's in the business of spending EB-5 money.

This quote was worrisome:

“For you to include items like ‘anticipated’ legal fees and attempting to bill for equipment that has already been paid, suggests that you are not performing your duties either as a construction manager or a fiduciary,” Donegan said.

At this point it wouldn't surprise me if the furniture for these hotels is purchased from Q Furniture, LLC and the shingles from Q Building Supplies, LLC.

If $250 million has been spent on EB-5 projects at Jay Peak, and 15% has been charged, that adds up to $37.5 million. But yet there is no money to open the hotel.

Rome really is burning.

 

[VTKilarney]

Today's Caledonian Record had a thank you to the employees:

 

[VTKilarney]

.

 

[faQ]

View attachment 19919


.

WTF is going on with this PR stuff? "I'm with Q", Jessica's history of Burke, "Dear Employees".

 

[MEtoVTSkier]

Either orders from the top, or the new GM and HR guys are scrambling with the damage control, possibly to overshadow all the EB5 secrets coming out?

 

[freeski]

The last batch of news sounds like the building of the venue for the Olympics in Sochi. Next week on American Greed...

 

[thetrailboss]

WTF is going on with this PR stuff? "I'm with Q", Jessica's history of Burke, "Dear Employees".

She claims that the BFP article was in the works for weeks at BFP's request. I find it hard to believe, and kind of lame of the BFP, to be askin for a piece on skiing in APRIL after this terrible season has ended. It was a nice effort, but there were some factual things that were not correct in it.

As to the ad, a little birdie told me that there might have been a huddle this week with a PR firm to discuss what to do in response to the criticism and now almost daily barrage of negative media coverage. This is likely one item from that list. The blog post from earlier this week was likely another....albeit half baked attempt.

 

[thetrailboss]

View attachment 19919


.

In the tradition of the "Scotty Translator", I'd like to offer this translation, or in the alternative, the first draft offered by Q:

Dear Assholes:

Shut the f^&* up! This season suuuuucccckkkkked. Had you employees sucked it up and worked harder then you would not have lost your jobs. I have fought wars where men have died. And you pussies are whining because you could not slide down some snow? You all got what you deserve last week--a form letter saying "f&*( you!"

In particular, f&*^ you for:

* Actually trying to care for what the customer wants. The customer is wrong, WRONG!
* Not knowing how the hell to make snow or do anything, ANYTHING!
* Actually thinking that I AM THE PROBLEM!
* Not running the QTamarack such that people want to eat here. It is ALL your fault!

If you all think you are coming back you are wrong. You all failed Q standards. Basic QTraining will start again soon and you are not welcome. And for you whining folks on Facebook, shut up! We hate you, hate you ALL! Just watch as we make BURKE GREAT AGAIN without YOU!

:lol:

:lol:

Laugh, please laugh, because that is all we can do :roll:

 

[epic]

15% of 50 million is 7.5 million. And they are short by how much???

 

[fbrissette]

15% of 50 million is 7.5 million. And they are short by how much???

You are forgetting the money for the EB5 management fee as well as the fact that it's now hard to believe that the construction cost was not inflated to begin with.

It certainly looks like the main reason that they are doing this is to skim as much money as they can. Why the hell would they use their own money ?

Their only incentive to save the Hotel is so they can keep their scam going elsewhere.

 

[VTKilarney]

I thought that the investment at Jay has been about $250 million. Where are some people getting the bigger numbers? Are you including Burke?

 

[BenedictGomez]

If you really want to make it difficult for someone to track money, start a whole lot of non-descript companies and get really good at the shell game.

Absolutely this. Yes.

I've said before that, in my opinion, Quiros is not in the business of running a ski area. He's in the business of spending EB-5 money.

Slight correction.

Quiros is not in the business of running a ski area. He's in the business of pocketing EB-5 money.

At this point it wouldn't surprise me if the furniture for these hotels is purchased from Q Furniture, LLC and the shingles from Q Building Supplies, LLC.

I fully expect that.

Q) How did Quiros make his fortune?
A) He was a buyer - specifically an importer.

Auditors should be looking for entities set up by Quiros and relatives and known contacts of Quiros and cross-matching them with the ACH movements & purchase orders etc... for construction materials, supplies, yes....furniture etc... in relation to Jay Peak and Q Burke.

Which is a given, except for the fact that this is norther Vermont, so auditors are probably too busy getting ready for trout season and checking out which double-features will be shown at the Sunset Drive-in this summer.

 

[thetrailboss]

So back to the positive.

This morning a Burkie posted that he wanted to get a copy of this great photo that Robert Lyons took some time ago of the mountain:

Well, by popular demand, Mr. Lyons has been gracious enough to come out of retirement and to make a special run of this photograph for the Friends of Burke Mountain. Please click here to order yours:

http://www.robertlyonsphotography.com/gd7903.htm

Be sure that thank him!

 

[freeski]

He'll get sued for not using the "Q". Very nice picture.

 

[ScottySkis]

I vote we call Mary J Burke

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