Dec. 22, 2010
Developers of Proposed River Place Change Strategy; No Bonds Sold
By Tony Rutherford
Huntingtonnews.net Reporter
Huntington, WV (HNN) – “We want everyone to get behind us,” proposed developer Brad Burgess told a Tuesday, Dec. 21 news conference at the International Brotherhood of Electrical Workers union hall, 1848 Madison Ave. Burgess and his partner, Keith McGuire, had hoped to raise $50 million dollars through Recovery Bond for an ambitious hotel/sports/entertainment/retail complex. The complex would be on land now occupied in part by the A.C.F. corporation and Flint Pigments (BASF, formerly Standard Ultramarine).
The multiple phase project totaling up to $200 million dollars has not attracted the investors needed to meet the December 31 Recovery bond deadline. So, the developers are regrouping their financial strategies and hoping to rally support for the first phase which would include a baseball field on the Flint Pigment parking lot for Marshall University and a semi-professional team.
Prior to the news conference, the developers told the Cabell County Commission they had not found investors to meet the December 31 deadline.
Although the two developers received the authority of the Cabell County Commission and WV Economic Development Authority, the Recovery Zone bonds had to be sold by December 31, 2010. The House of Representatives and the Senate approved the Tax Relief Unemployment Insurance Authorization and Job Creation Act of 2010, but it extended New York Liberty Zone and housing credits for “GO” zones. However, the bill did extend tax exempt bond funding in GO zones as well as bonus depreciation deductions.
Sean L. Spears, executive director of the California Dept Limit Allocation Committee, had in a Dec. 17 memo explained to prospective issuers that “under federal law there will be no extensions… Applicants and project sponsors who may have hoped to apply under our reallocation process in 2011 if the program had been extended are advised to consult with their respective bond counsel to determine if the subject project might qualify for an allocation of ‘regular’ private activity volume cap as administered by CDLAC. If qualified, CDLAC encourages the submission of applications for an award of tax-exempt bond allocation for those projects.” http://www.treasurer.ca.gov/cdlac/news/rzb.pdf
Should the developers find private investors, the project when completed could provide 750 full time jobs, $160 million in economic impact and add $3.5 million in taxes for Huntington, Cabell County and West Virginia.
While Burgess told reporters the project would “transform the East End of Huntington,” the developers still have significant hurdles. According to the developers, they have a verbal commitment from a wooden bat league to play at the stadium and an option on the ACF Foundry property. However, Flint Pigment has not reached an agreement with these developers. The land between Third and Fifth Avenue now a parking lot is the proposed stadium location.
Marshall University has reiterated that a feasibility study be completed prior to the institution determining their degree of interest and/or support. Developer Burgess contends that the Center for Business and Economic Research conducted such a study early in 2010.
As for their new strategy, they are seeking private individuals to purchase tax exempt and taxable bonds.
Originally, the WV Public Port Authority under former director Patrick Donovan had expressed interest in the final phase which would potentially involve a port training facility.
Governmental entities have expressed support for the concept and the potential economic impact, however, aside from the authorization to sell Recovery Bond, none have committed any resources to the project.
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Developers of Proposed River Place Change Strategy; No Bonds Sold
By Tony Rutherford
Huntingtonnews.net Reporter
Huntington, WV (HNN) – “We want everyone to get behind us,” proposed developer Brad Burgess told a Tuesday, Dec. 21 news conference at the International Brotherhood of Electrical Workers union hall, 1848 Madison Ave. Burgess and his partner, Keith McGuire, had hoped to raise $50 million dollars through Recovery Bond for an ambitious hotel/sports/entertainment/retail complex. The complex would be on land now occupied in part by the A.C.F. corporation and Flint Pigments (BASF, formerly Standard Ultramarine).
The multiple phase project totaling up to $200 million dollars has not attracted the investors needed to meet the December 31 Recovery bond deadline. So, the developers are regrouping their financial strategies and hoping to rally support for the first phase which would include a baseball field on the Flint Pigment parking lot for Marshall University and a semi-professional team.
Prior to the news conference, the developers told the Cabell County Commission they had not found investors to meet the December 31 deadline.
Although the two developers received the authority of the Cabell County Commission and WV Economic Development Authority, the Recovery Zone bonds had to be sold by December 31, 2010. The House of Representatives and the Senate approved the Tax Relief Unemployment Insurance Authorization and Job Creation Act of 2010, but it extended New York Liberty Zone and housing credits for “GO” zones. However, the bill did extend tax exempt bond funding in GO zones as well as bonus depreciation deductions.
Sean L. Spears, executive director of the California Dept Limit Allocation Committee, had in a Dec. 17 memo explained to prospective issuers that “under federal law there will be no extensions… Applicants and project sponsors who may have hoped to apply under our reallocation process in 2011 if the program had been extended are advised to consult with their respective bond counsel to determine if the subject project might qualify for an allocation of ‘regular’ private activity volume cap as administered by CDLAC. If qualified, CDLAC encourages the submission of applications for an award of tax-exempt bond allocation for those projects.” http://www.treasurer.ca.gov/cdlac/news/rzb.pdf
Should the developers find private investors, the project when completed could provide 750 full time jobs, $160 million in economic impact and add $3.5 million in taxes for Huntington, Cabell County and West Virginia.
While Burgess told reporters the project would “transform the East End of Huntington,” the developers still have significant hurdles. According to the developers, they have a verbal commitment from a wooden bat league to play at the stadium and an option on the ACF Foundry property. However, Flint Pigment has not reached an agreement with these developers. The land between Third and Fifth Avenue now a parking lot is the proposed stadium location.
Marshall University has reiterated that a feasibility study be completed prior to the institution determining their degree of interest and/or support. Developer Burgess contends that the Center for Business and Economic Research conducted such a study early in 2010.
As for their new strategy, they are seeking private individuals to purchase tax exempt and taxable bonds.
Originally, the WV Public Port Authority under former director Patrick Donovan had expressed interest in the final phase which would potentially involve a port training facility.
Governmental entities have expressed support for the concept and the potential economic impact, however, aside from the authorization to sell Recovery Bond, none have committed any resources to the project.
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