Jay Peak EB-5 news

[jaysunn]

Understood.....I will attempt to keep the foul language at bay.

 

[VTKilarney]

Word on the street is that the contractors thought that the work was proceeding. They have now been left high and dry and are scrambling to find a way to replace the work.

This seems odd given that Stenger says he postponed the project to give his marketing team a break. Is there more to the story here?

 

[BenedictGomez]

Word on the street is that the contractors thought that the work was proceeding. They have now been left high and dry and are scrambling to find a way to replace the work.

This seems odd given that Stenger says he postponed the project to give his marketing team a break. Is there more to the story here?

I have absolutely no idea what's going on, but the bolded above is positively ridiculous nonsense.

 

[thetrailboss]

I have absolutely no idea what's going on, but the bolded above is positively ridiculous nonsense.

I think it has to do with them having a hard time getting investors. Maybe it is because folks aren't happy, maybe it is because there now is a lot of competition for the same funds, who knows. This is not new with Jay....they have had good ideas and no money and it just takes time to raise it.

 

[skifree]

if these investments where any good wouldn't investors from the good ole USA jump in?

 

[thetrailboss]

if these investments where any good wouldn't investors from the good ole USA jump in?

You'd think so. But check your investments and see where the money is going.

Ski areas have a hard time getting capital because of the risk involved. Jay was on the cutting edge in using this as a method to finance their projects that they could not get conventional financing to complete.

 

[WWF-VT]

Here's a link to an interesting March 14th article on the EB-5 program used across a variety of VT business projects including Sugarbush:


http://www.burlingtonfreepress.com/article/20130314/BUSINESS08/303140011/EB-5-vermont-jay-peak-visas

 

[BenedictGomez]

if these investments where any good wouldn't investors from the good ole USA jump in?

Yes, which is why the word, "investments" is generally a complete farce with regard to EB-5.

The only "investment" you're getting for your $1M (or $500k) is skipping the line of immigrants who dont have as much money as you.

 

[thetrailboss]

The only "investment" you're getting for your $1M (or $500k) is skipping the line of immigrants who dont have as much money as you.

That would be the only guarantee per se I guess. And I think the number of folks who want to buy this privilege is shrinking.

 

[VTKilarney]

That would be the only guarantee per se I guess. And I think the number of folks who want to buy this privilege is shrinking.

I'm not sure if demand is shrinking or if competition is increasing - or perhaps a combination of both. What little I have read suggests that there is still demand, but I freely admit that I have just glanced at a couple of websites - which is not at all what I would consider to be reliable.

 

[fbrissette]

Yes, which is why the word, "investments" is generally a complete farce with regard to EB-5.

The only "investment" you're getting for your $1M (or $500k) is skipping the line of immigrants who dont have as much money as you.

As far as I know, the first batch of Jay Peak EB5 investors got their money back (entire amount ???) last year (Tramhouse lodge), and Jay Peak elected to keep the tramhouse instead of selling it as condos. Even if you get zero return, if you get your money back and a green card it's a pretty good deal.

 

[VTKilarney]

As far as I know, the first batch of Jay Peak EB5 investors got their money back (entire amount ???) last year (Tramhouse lodge), and Jay Peak elected to keep the tramhouse instead of selling it as condos. Even if you get zero return, if you get your money back and a green card it's a pretty good deal.

An alleged Phase 1 investor posted this:
http://britishexpats.com/forum/showpost.php?p=11097464&postcount=244
The full thread can be found here: http://britishexpats.com/forum/showthread.php?t=754864&page=17

Later in that thread they corrected the balloon payment amount to $306,500. They also stated that they were not going to receive any income from the hotel. I have no idea if they really were an investor or if what they said is true.

If investors have indeed been paid back in full, this is fantastic news. Where did you learn of this?

 

[fbrissette]

Where did you learn of this?

This was mentioned at a homeowner meeting. To be fair, there was no mention of numbers. The information was relayed as I mentioned above: EB-5 participants got their money back, Jay Peak elected to keep the Tramhouse. The way it was worded, impossible to tell if they got all of their money back or not, but it sounded as if they got a good chunk of it back.

To me the good news was that Jay Peak kept the tramhouse, which means they were able to make money out of it and keep the jobs that come with it. I have no idea if EB-5 investors had a choice between keeping part ownership or if there was negociation about how much money they would get to opt out.

 

[VTKilarney]

Here's a WCAX story about an original investor:
http://www.wcax.com/story/23895536/bu

 

[BenedictGomez]

Here's a WCAX story about an original investor:
http://www.wcax.com/story/23895536/bu

LOL. Whelp.... that settles that.

Love this bit:

"I tell my clients three things -- one, will your green card be approved? Two, will it be made permanent? Three, will you get your money back? The third is less important than the first two, Korda said.

And now HE'S an "Immigration Lawyer" living in America, making serious BANK, and helping other people purchase US citizenship. Oh the American dream! (fueled and made possible by a horrible government program)

 

[fbrissette]

LOL. Whelp.... that settles that.

If I had serious money, the goal would be to get the green card. Getting my money back would be the icing on the cake. We will likely never know if and how much money the investors are getting back.

 

[VTKilarney]

This was mentioned at a homeowner meeting. To be fair, there was no mention of numbers. The information was relayed as I mentioned above: EB-5 participants got their money back, Jay Peak elected to keep the Tramhouse.

It's so maddening to hear different accounts of what is happening at Jay. I was able to find an article from September, 2013 that is largely consistent with what the alleged Phase One investor posted on the Internet. (My understanding is that the Tram Haus was Phase One.) The article is here: http://www.discovernewportvt.com/ab...enger-pays-deposit-pomerleau-waterfront-plaza

In the article, Stenger stated that all that had happened was that agreements had been signed to fully pay back investors. (aka: "I promise to do what I promised to do.") Stenger said the first 35 investors, whose funds built the Tramhaus Hotel project, will receive their $500,000 investments back in installments over the next 10 years.

I suppose that something could have happened between September and now, but it seems hard to believe that we would not have heard about it. My gut feeling is that the person speaking at the homeowner's meeting left the impression that the investors have gotten their money back by referencing the agreement for them to eventually get their money back.

 

[Masskier]

It's so maddening to hear different accounts of what is happening at Jay. I was able to find an article from September, 2013 that is largely consistent with what the alleged Phase One investor posted on the Internet. (My understanding is that the Tram Haus was Phase One.) The article is here: http://www.discovernewportvt.com/ab...enger-pays-deposit-pomerleau-waterfront-plaza

In the article, Stenger stated that all that had happened was that agreements had been signed to fully pay back investors. (aka: "I promise to do what I promised to do.") Stenger said the first 35 investors, whose funds built the Tramhaus Hotel project, will receive their $500,000 investments back in installments over the next 10 years.

I suppose that something could have happened between September and now, but it seems hard to believe that we would not have heard about it. My gut feeling is that the person speaking at the homeowner's meeting left the impression that the investors have gotten their money back by referencing the agreement for them to eventually get their money back.

Maybe, and I am just offering this as a possibility, with no first hand knowledge, but it would not be unusual for a developer to build a hotel, get it up and operating, then re-finance and pay off the investors.

 

[VTKilarney]

Maybe, and I am just offering this as a possibility, with no first hand knowledge, but it would not be unusual for a developer to build a hotel, get it up and operating, then re-finance and pay off the investors.

I was thinking that may have happened. It would be good news if it had. The only thing that makes me somewhat skeptical is that I cannot imagine that a traditional lender would give better terms than the EB-5 option. But the one thing I know about Jay is that I don't know!

 

[from_the_NEK]

Maybe, and I am just offering this as a possibility, with no first hand knowledge, but it would not be unusual for a developer to build a hotel, get it up and operating, then re-finance and pay off the investors.

That really doesn't make sense in this case since there is no interest being paid on the EB-5 loans (is there?), so "refinancing" kind of seems pointless.