Big Burke announcement

[thetrailboss]

Wow, this is sounding worse and worse. Folks should watch the video.

http://www.wcax.com/story/25430753/proposed-newport-hotel-project-stalls

Tony Pomerleau says that this is off because Bill Stenger doesn't have the money. This is not the first time that Bill has had a great idea and no money to do it. Any other NEKer will recall that he talked for decades about the golf course at Jay. The first time I visited Jay in 1992 they had an ad selling house lots for the golf course that was not built for almost ten years.

Pomerleau has owned the land since 1932. So he owns it free and clear and is getting revenue from leases. He is going to sign leases with his tenants for up to ten years!

From the story and what Pomerleau said, it sounds like they had entered into an option agreement and Stenger did not come up with the money in time, so it is off.

What is most troubling to me was that WCAX interviewed both guys before and after their "meeting" with Stenger saying to WCAX they still had a deal and Pomerleau saying no. Very, very troubling.

Pomerleau also is someone who would not do this so publicly; he is the father-in-law of Senator Leahy, as in the same Senator Leahy that is working with Bill Stenger on the EB-5 stuff. If Pomerleau is openly pulling the plug, then something is really, really wrong here. And I hate to tell Bill but I never go to business meetings dressed like that.

 

[VTKilarney]

The video was very interesting to say the least. In my opinion the biggest revelation (among a couple of big ones) in the video is that Stenger conceded that EB-5 money will not fund the purchase the property. He is now scrambling to try to find private investors. If this is not an indication that EB-5 fundraising has become extremely difficult, I do not know what is. Pomerleau came across much better in the video. Stenger seemed almost panicked, especially when caught making an emergency visit to Burlington. I'm not sure what he has to gain when he essentially calls Pomerleau a liar regarding whether or not Pomerleau told him the deal was off.

Again, I don't know why Stenger is so afraid to admit that competition for EB-5 funds has increased. I still think people would trust him even in a more competitive it environment given his track record. Is it possible that another project, such as the Renaissance Block, is contingent on the hotel going forward?

 

[thetrailboss]

The video was very interesting to say the least. In my opinion the biggest revelation (among a couple of big ones) in the video is that Stenger conceded that EB-5 money will not fund the purchase the property. He is now scrambling to try to find private investors. If this is not an indication that EB-5 fundraising has become extremely difficult, I do not know what is. Pomerleau came across much better in the video. Stenger seemed almost panicked, especially when caught making an emergency visit to Burlington. I'm not sure what he has to gain when he essentially calls Pomerleau a liar regarding whether or not Pomerleau told him the deal was off.

I watched it again. I was pretty disturbed by how he did not answer the question about having the money. "I will have it" and then saying some stupid comment about the Tram Haus that was completely irrelevant.

Again, I don't know why Stenger is so afraid to admit that competition for EB-5 funds has increased. I still think people would trust him even in a more competitive it environment given his track record. Is it possible that another project, such as the Renaissance Block, is contingent on the hotel going forward?

I think that he is just caught off-guard. He was so excited because they FINALLY found money to do what they wanted to do and they were far ahead of a lot of folks. But I think that perhaps they got overly optimistic and have overpromised what they can do and may be in trouble. Past performance is not a guarantee of future results.

Tying this back to Burke, speaking for myself I'd be really surprised if they do begin the hotel at Burke. If they do, I hope that they have ALL the money in hand (as in 50 investors paid in) to COMPLETE the Hotel and RUN IT properly. There would be nothing worse for Burke then for them to start construction and run out of money before completion.

 

[VTKilarney]

The Burlington Free Press has an article posted online. The reporting is what you'd expect from the Free Press. The only thing their story adds is that a) Stenger won't return their phone call; and b) Quiros Sr. did not at all anticipate that a property owner wouldn't wait more than four years for payment.

As for Burke... I had become much more optimistic lately, but I had a nagging fear that the "site work" may be nothing more than a feint. For all of my optimism, there were a couple of very troubling indications, such as a) Peak CM did not appear to bid out the work; b) Peak CM issued a press release saying that they were "released" to begin construction, yet Andrew cryptically suggested that the "release" wasn't a release at all; and c) No indication whatsoever of pre-construction activity on-site.

I agree that it would be much worse for Burke if the hotel project is abandoned mid-construction. It would essentially be Burke's version of Pyongyang's Ryugyong Hotel.

Here is the one thing I do know. Stenger and Quiros are running short on excuses. If things are not working out as planned, they can only pretend that the emperor has clothes for so long.

But I keep coming back to my question: Why are the being so defensive about this? Why are they petrified to admit that competition has increased?
We shall see what, if anything, develops this summer.

 

[from_the_NEK]

I agree that it would be much worse for Burke if the hotel project is abandoned mid-construction. It would essentially be Burke's version of Pyongyang's Ryugyong Hotel.

But at least the Bear's Den would still be alive! :beer:

 

[thetrailboss]

 

[VTKilarney]

Stenger insists once again that Burke construction will begin in June: http://digital.vpr.net/post/newport-revitalization-plan-hits-roadblock

 

[VTKilarney]

Stenger is quoted in the VPR article as saying that construction has begun on the ANC plant. This is simply not true. Their permit is limited to partial demolition of the old Bogner plant. They still need an Act 250 permit to begin construction on the ANC plant.

Source: http://newportdispatch.com/demolition-permit-issued-to-anc-bio-vermont/

 

[VTKilarney]

Here is a gem of a Stenger quote from the VPR article: I met with Tony Pomerleau today and we have agreed to continue negotiating on the sale of the Newport Waterfront Plaza.

Was he at the same meeting as Tony? Or is this Stenger's idea of negotiation:
P: I need a deposit.
S: Can I give you 1/10th of the deposit we agreed upon?
P: No
S: Will you wait four years for me to come up with a deposit?
P: No
S: Will you keep waiting for me to come up with some money?
P: No
S: Thanks for negotiating with me. I am glad we have agreed to continue negotiating.

 

[ScottySkis]

Sorrybabout what is going on guys and gals. It be great if we could get oweners at Burke like the owner at Magic and Platty. Maybe theybshould coke up with season pass for these 3 hills. The epic snow stys good pass.

 

[thetrailboss]

I think that we just saw Bill Stenger schooled by a 96-year old.

 

[thetrailboss]

Whiskey Tango Foxtrot? :blink: How can this be so the opposite of what we just heard and saw on WCAX?

http://digital.vpr.net/post/newport-revitalization-plan-hits-roadblock

"I met with Tony Pomerleau today and we have agreed to continue negotiating on the sale of the Newport Waterfront Plaza. Both Tony and I have some more work to do regarding these negotiations but we are both still supportive of the project and want to see it come to fruition. We both agree strongly that the Marina, Hotel and Conference Center would be a good thing for the City of Newport as it would bring many good paying jobs to the area and economic benefits for decades to come. Unfortunately, the Federal Government has slowed down the processing of EB-5 applications and this has led to certain delays in project development. While this is frustrating for all involved, we are hopeful that the processing times will return to normal shortly. In the meantime, we are pleased that construction has begun on the AnC Bio facility and that there will be a groundbreaking for the construction at Burke Mountain in June. In addition, I just returned from a fundraising trip in Asia with Senator Leahy and Congressman Welch and results from that trip are encouraging."

Tony said it was dead and that he is resigning his tenants; he also hinted he'd do the project himself.

 

[xlr8r]

Whiskey Tango Foxtrot? :blink: How can this be so the opposite of what we just heard and saw on WCAX?

http://digital.vpr.net/post/newport-revitalization-plan-hits-roadblock



Tony said it was dead and that he is resigning his tenants; he also hinted he'd do the project himself.

What is a Senator and a Congressman doing going on these field trips with Stenger to Asia. What a waste of their time. Aren't there more important things they could be working on either for Vermont or in Washington, instead of chasing rich immigrants to build a hotel.

Its time for everyone involved to admit they are having trouble getting investors. It was obviously to good to be true when they were proclaiming their plans a year or two ago. Now reality has hit them and there is no backup plan and just by looking at Stenger's interview you can tell he is scrambling.

 

[VTKilarney]

Another gem of a quote from Stenger: "Both Tony and I have some more work to do regarding these negotiations"

Stenger is being disingenuous by characterizing this as "negotiations." A price had been agreed upon. All Pomerleau wanted was for Stenger to pay what he said he would pay - or for that matter to pay the deposit he agreed to pay. Not much to negotiate there. You either pay or you don't get the property.

 

[VTKilarney]

Tuesday's edition of the Caledonian Record has a front page article about this. Unfortunately, there isn't anything substantively new from Pomerleau or Stenger. The article is essentially a re-hash of comments made to WCAX story and Stenger's email to the press.

 

[Big Wave Dave]

I vote to keep this thread burke-centric, or lets start a new one.....hotel or bust.

 

[burski]

its all connected so it makes sense to keep it together, hotel or bust, eb5 and burke bust...

 

[thetrailboss]

I vote to keep this thread burke-centric, or lets start a new one.....hotel or bust.

It's all related.

Another observation: last fall the Merck Window Factory project was quietly shelved because "they were not going to generate enough jobs." Now we are hearing that part of the problem is that the feds are questioning job creation numbers for all EB-5 projects. So it comes back to not enough jobs being created.

For example, the Burke Hotel is set to cost, what, $25 million? That is 50 investors x 10 jobs each = 500 jobs. Will that hotel create 500 jobs?

 

[thetrailboss]

BFP on the issue...nothing really new other than Stenger did not have the money.

 

[SkiRaceParent]

I for one do get concerned when things are falling apart in Newport. These things ARE interrelated, unfortunately, in my opinion....hope the other shoe doesn't fall and further impact the Burke Hotel project.