May 10, 2010
Associations Reveal Past Successes, Proposals of Developer Applying for $50 Million Dollars in Bonds for Huntington Project
By Tony Rutherford
Huntingtonnews.net Reporter
Huntington, WV (HNN) – Although the speculation continues on the nature of the project for which the Cabell County Commission could act as a bond conduit, Huntingtonnews Net has clarified some portions of the developers “signature projects.”
Although his Findlay, Ohio, project had been scuttled by voters and Corps of Engineers flooding issues, Brad Burgess had linked with Boorn Partners on the project. John Boorn had been the chairman and founding partner of Madison Marquette. Many of the signature projects accompanying the Findlay proposal had been developed by a combination of Boorn Partners and Madison Marquette.
In an earlier story, a representative of Madison Marquette could not recall involvement of either the Thayer Group or Brad Burgess on certain listed signature projects many of which were in California and other western states. Others included the McAlpin Department Store restoration in Cincinnati and a development proposal to Xavier University for which neither Boorn or Thayer were not awarded the contract.
Boorn had a role in the ill fated Kentucky Horse Park Westin Hotel project, which did not gain funding in a tough bond market. He was listed as a director of the non-profit Bluegrass Equine and Tourism Foundation (BETF), along with Burgess, according to filings with the Kentucky Secretary of State’s office.
The unique nature of the Westin/Horse Park proposal led to controversy within Kentucky’s Capital Projects and Bond Oversight Committee. Under the plan, the for profit foundation would have overseen the private hotel development where money had been raised through public bonding monies. Profits would be given to equine and tourism interests and after 42 years, the ownership of the hotel would have reverted to the Horse Park.
According to Lexington Herald-Leader articles conflict of interest problems began with the inclusion of Steve Branscum, one of then-Gov. Ernie Fletcher's closest friends, political ally and construction magnate , on the BETF board of directors. At the recommendation of the I.R.S., he would step aside from the non-profit board.
Burgess formed the BETF in March 2007. Two weeks later, he created KHPWESLUX, a limited liability company formed between his Thayer Group and Boorn Partners, founded by John Boorn, Mary Lynne Boorn and Joseph Straka. KHPWESLUX then bid on the hotel project, beating out Corporex of Northern Kentucky to build the hotel. The governor would fill four to six additional seats on the BETF board, Burgess told the Herald-Leader at the time.
Branscum’s connection to then Gov. Fletcher allowed him, based on Herald Leader stories to obtain $15 million in bonds to finance UK’s basketball practice facility. As a result of this and other deals, Branscum would be called to testify before the grand jury. No charges were filed against him, the Herald-Leader wrote.
Despite tough questions, the Finance and Administration Cabinet awarded the bids and signed off on bond financing. Only Rep. Jim Wayne, D-Louisville, voted against the deal. "There are serious questions here, when you have a board of directors of an LLC be the same directors as the non-profit foundation," Wayne told the Herald-Leader. "No banker would approve of this. It's a shell game." But, Kentucky Governor Brashear had worked on putting the deal on the table. The Herald-Leader revealed, however:
KHPWESLUX would have gotten a $5 million development fee, which Burgess said is below his usual 7 percent rate. "It all has to do with risk and reward," he said. "If we were taking a traditionally greater risk, the fees would be much higher." (The figure appeared to also include monies to Boorn Partners.)
After the Kentucky Finance and Administration terminated the contract when the bonds were not sold , Thayer brought suit in Franklin County stating they should have been allowed more time to sell the bonds. The complaint remains in litigation.
At the time of the luxury hotel proposal, it would have been completed in time for the Alltech FEI World Equestrian Games, which will be held at the Kentucky Horse Park in August and September 2010. One reason for terminating the contract was a concern that hotel construction would be on-going during the Games.
THE MARSHALL BID
Marshall University has now confirmed that “Brad Burgess was part of a group that presented a plan” for the $82 million dollar freshman residence halls and recreation center project. At that time, Burgess was associated with Koll Development Company. However, the project was awarded to Capstone Management. Koll won the original bid on the upscale Horse Park Hotel, but lost its financing, which led to Burgess’ putting together other developers for a second try.
The Thayer Group Findley, Ohio, project (in conjunction with Boorn) would have consisted of a mixed use development on remediated land (i.e. former brownstone or industrial contaminated). Speculation for the Huntington project has suggested inclusion of an MU baseball stadium in the mix. There are lands near the university which would meet that designation.
ONE PEACHTREE CENTER, TAMPA WATERSIDE HOTEL
An article in the Herald-Dispatch stated that Burgess has more than 30 years of commercial real estate experience. He was involved in development of One Peachtree Center (now Sun Turst), Atlanta and the Tampa Marriott Waterside Convention Hotel and Cornerstone complex. The Tampa development utilized a former landfill.
Along with the Herald Dispatch, HNN has filed a Freedom of Information Act request with the Economic Development Authority to make public the application for the $50 million bond monies.
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Associations Reveal Past Successes, Proposals of Developer Applying for $50 Million Dollars in Bonds for Huntington Project
By Tony Rutherford
Huntingtonnews.net Reporter
Huntington, WV (HNN) – Although the speculation continues on the nature of the project for which the Cabell County Commission could act as a bond conduit, Huntingtonnews Net has clarified some portions of the developers “signature projects.”
Although his Findlay, Ohio, project had been scuttled by voters and Corps of Engineers flooding issues, Brad Burgess had linked with Boorn Partners on the project. John Boorn had been the chairman and founding partner of Madison Marquette. Many of the signature projects accompanying the Findlay proposal had been developed by a combination of Boorn Partners and Madison Marquette.
In an earlier story, a representative of Madison Marquette could not recall involvement of either the Thayer Group or Brad Burgess on certain listed signature projects many of which were in California and other western states. Others included the McAlpin Department Store restoration in Cincinnati and a development proposal to Xavier University for which neither Boorn or Thayer were not awarded the contract.
Boorn had a role in the ill fated Kentucky Horse Park Westin Hotel project, which did not gain funding in a tough bond market. He was listed as a director of the non-profit Bluegrass Equine and Tourism Foundation (BETF), along with Burgess, according to filings with the Kentucky Secretary of State’s office.
The unique nature of the Westin/Horse Park proposal led to controversy within Kentucky’s Capital Projects and Bond Oversight Committee. Under the plan, the for profit foundation would have overseen the private hotel development where money had been raised through public bonding monies. Profits would be given to equine and tourism interests and after 42 years, the ownership of the hotel would have reverted to the Horse Park.
According to Lexington Herald-Leader articles conflict of interest problems began with the inclusion of Steve Branscum, one of then-Gov. Ernie Fletcher's closest friends, political ally and construction magnate , on the BETF board of directors. At the recommendation of the I.R.S., he would step aside from the non-profit board.
Burgess formed the BETF in March 2007. Two weeks later, he created KHPWESLUX, a limited liability company formed between his Thayer Group and Boorn Partners, founded by John Boorn, Mary Lynne Boorn and Joseph Straka. KHPWESLUX then bid on the hotel project, beating out Corporex of Northern Kentucky to build the hotel. The governor would fill four to six additional seats on the BETF board, Burgess told the Herald-Leader at the time.
Branscum’s connection to then Gov. Fletcher allowed him, based on Herald Leader stories to obtain $15 million in bonds to finance UK’s basketball practice facility. As a result of this and other deals, Branscum would be called to testify before the grand jury. No charges were filed against him, the Herald-Leader wrote.
Despite tough questions, the Finance and Administration Cabinet awarded the bids and signed off on bond financing. Only Rep. Jim Wayne, D-Louisville, voted against the deal. "There are serious questions here, when you have a board of directors of an LLC be the same directors as the non-profit foundation," Wayne told the Herald-Leader. "No banker would approve of this. It's a shell game." But, Kentucky Governor Brashear had worked on putting the deal on the table. The Herald-Leader revealed, however:
KHPWESLUX would have gotten a $5 million development fee, which Burgess said is below his usual 7 percent rate. "It all has to do with risk and reward," he said. "If we were taking a traditionally greater risk, the fees would be much higher." (The figure appeared to also include monies to Boorn Partners.)
After the Kentucky Finance and Administration terminated the contract when the bonds were not sold , Thayer brought suit in Franklin County stating they should have been allowed more time to sell the bonds. The complaint remains in litigation.
At the time of the luxury hotel proposal, it would have been completed in time for the Alltech FEI World Equestrian Games, which will be held at the Kentucky Horse Park in August and September 2010. One reason for terminating the contract was a concern that hotel construction would be on-going during the Games.
THE MARSHALL BID
Marshall University has now confirmed that “Brad Burgess was part of a group that presented a plan” for the $82 million dollar freshman residence halls and recreation center project. At that time, Burgess was associated with Koll Development Company. However, the project was awarded to Capstone Management. Koll won the original bid on the upscale Horse Park Hotel, but lost its financing, which led to Burgess’ putting together other developers for a second try.
The Thayer Group Findley, Ohio, project (in conjunction with Boorn) would have consisted of a mixed use development on remediated land (i.e. former brownstone or industrial contaminated). Speculation for the Huntington project has suggested inclusion of an MU baseball stadium in the mix. There are lands near the university which would meet that designation.
ONE PEACHTREE CENTER, TAMPA WATERSIDE HOTEL
An article in the Herald-Dispatch stated that Burgess has more than 30 years of commercial real estate experience. He was involved in development of One Peachtree Center (now Sun Turst), Atlanta and the Tampa Marriott Waterside Convention Hotel and Cornerstone complex. The Tampa development utilized a former landfill.
Along with the Herald Dispatch, HNN has filed a Freedom of Information Act request with the Economic Development Authority to make public the application for the $50 million bond monies.
Share This Story:
Make HNN Your Homepage (IE Users Only)
