Aug. 20, 2010
Development Authority Approves Tax Exempt Bonds for Project Near Marshall
Developers Must Find Investors, Obtain University’s Lease Participation
By Tony Rutherford
Huntingtonnews.net Reporter
Huntington, WV (HNN) - The RiverPlace project has received approval from the West Virginia Economic Development Authority to issue $25.6 million in tax-free Recovery Zone bonds. As envisioned, the project’s first phase would bring a baseball stadium, hotel and restaurants to property in the 2300 block of Third Avenue and the 2300 block of Fifth Avenue.
Developers Brad Burgess and Keith McGuire have worked on land acquisition and worked with the West Virginia Port Authority , which would likely be part of the second phase of the project.
David Warner, executive director of the WV Economic Development Authority, stated the project “has made significant progress regarding land acquisition and an agreement with a public entity.”
Burgess and McGuire have unofficial agreements regarding use of the land should the project come to fruition. Joe Ochsner, site manager for Flint Group Pigments in Huntington told the Herald Dispatch there have been “discussions” with the developers but an agreement has not been signed.
Economic Development Authority member Greg Skidmore asked if an agreement with Marshall for the baseball stadium is in place. Burgess said talks were ongoing and amiable. “The agreement we seek with Marshall is a lease,” he said in a Charleston Daily Mail report. “This is not a partnership with Marshall. We will finance and provide a stadium.” Marshall would have its baseball team play there and a collegiate summer league team would play there too.
However, Marshall University Chief of Staff Matt Turner told HNN Thursday afternoon, August 19, that “we are not in negotiations with Mr. Burgess or Mr. McGuire.”
Marshall through their spokesman reiterated a previous statement that they would like to see “the interest by private investors in this proposal” along with the results of a feasibility study “before the university would move forward in these discussions.”
At a May meeting the development authority had tabled a $50 million dollar request from the RiverPlace developers pending “additional agreements in place, such as formal agreements with the West Virginia Public Port Authority and Marshall,” the Daily Mail said.
Although contradictions appear related to Marshall, an unidentified source explained to HNN Thursday afternoon that the money remains in the hands of the authority until the developers can bring their deal together. Calling this a “very preliminary” stage, the source explained that these developers have been granted permission to find investors to purchase the bonds . Likely , in order to sell the bonds, the purchasers would also require a financial study demonstrating profitability. The developers must move fast --- the bonds must be sold by December 31, 2010.
When questioned about sustainability for the project , the Daily Mail reported that Burgess said, “revenue from the hotel and restaurant carry the debt service of the sports facility.”
Skidmore remarked that it would be “tough” for the proposed Courtyard by Marriott or Hilton Garden Inn to support “a major sports facility.”
Warner stressed, “our role has been to say if this much is available … and we feel [they are eligible] to move forward.”
Permission to issue $26.6 million in bonds translates into a go out and find investors to purchase the bonds .
As envisioned, the two phase project could eventually have a $250 million dollar cost. It could include a track and soccer field, industry training centers, retail space, an extended stay hotel, and research facility.
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Development Authority Approves Tax Exempt Bonds for Project Near Marshall
Developers Must Find Investors, Obtain University’s Lease Participation
By Tony Rutherford
Huntingtonnews.net Reporter
Huntington, WV (HNN) - The RiverPlace project has received approval from the West Virginia Economic Development Authority to issue $25.6 million in tax-free Recovery Zone bonds. As envisioned, the project’s first phase would bring a baseball stadium, hotel and restaurants to property in the 2300 block of Third Avenue and the 2300 block of Fifth Avenue.
Developers Brad Burgess and Keith McGuire have worked on land acquisition and worked with the West Virginia Port Authority , which would likely be part of the second phase of the project.
David Warner, executive director of the WV Economic Development Authority, stated the project “has made significant progress regarding land acquisition and an agreement with a public entity.”
Burgess and McGuire have unofficial agreements regarding use of the land should the project come to fruition. Joe Ochsner, site manager for Flint Group Pigments in Huntington told the Herald Dispatch there have been “discussions” with the developers but an agreement has not been signed.
Economic Development Authority member Greg Skidmore asked if an agreement with Marshall for the baseball stadium is in place. Burgess said talks were ongoing and amiable. “The agreement we seek with Marshall is a lease,” he said in a Charleston Daily Mail report. “This is not a partnership with Marshall. We will finance and provide a stadium.” Marshall would have its baseball team play there and a collegiate summer league team would play there too.
However, Marshall University Chief of Staff Matt Turner told HNN Thursday afternoon, August 19, that “we are not in negotiations with Mr. Burgess or Mr. McGuire.”
Marshall through their spokesman reiterated a previous statement that they would like to see “the interest by private investors in this proposal” along with the results of a feasibility study “before the university would move forward in these discussions.”
At a May meeting the development authority had tabled a $50 million dollar request from the RiverPlace developers pending “additional agreements in place, such as formal agreements with the West Virginia Public Port Authority and Marshall,” the Daily Mail said.
Although contradictions appear related to Marshall, an unidentified source explained to HNN Thursday afternoon that the money remains in the hands of the authority until the developers can bring their deal together. Calling this a “very preliminary” stage, the source explained that these developers have been granted permission to find investors to purchase the bonds . Likely , in order to sell the bonds, the purchasers would also require a financial study demonstrating profitability. The developers must move fast --- the bonds must be sold by December 31, 2010.
When questioned about sustainability for the project , the Daily Mail reported that Burgess said, “revenue from the hotel and restaurant carry the debt service of the sports facility.”
Skidmore remarked that it would be “tough” for the proposed Courtyard by Marriott or Hilton Garden Inn to support “a major sports facility.”
Warner stressed, “our role has been to say if this much is available … and we feel [they are eligible] to move forward.”
Permission to issue $26.6 million in bonds translates into a go out and find investors to purchase the bonds .
As envisioned, the two phase project could eventually have a $250 million dollar cost. It could include a track and soccer field, industry training centers, retail space, an extended stay hotel, and research facility.
Share This Story:
Make HNN Your Homepage (IE Users Only)
