In Brief City Rebuffs Minor’s Request for Hotel Assistance August 12, 2011 Waldo Jaquith 4 Comments Halsey Minor has asked the city to help finish his hotel. The answer was basically “hell no.”
4 thoughts on “City Rebuffs Minor’s Request for Hotel Assistance”
That is a truly sad letter from Minor to Graff, the reporter.
“Their” is litigation. But, “their” is no growth. Nor, is “their” a Santa Claus.
This guy already owes the city $85,000, and he expects them to give him a nickel? It is good to know, however, that he “regularly go(es) to life style malls like the Grove in LA”.
I do hope, however, that Mr. Minor actually does call Governor Warner’s office to seek help. I’d love to see his reaction when they tell him that Senator Warner no longer works there.
Anybody know when the FDIC might wrap this up? Maybe they are waiting for Minor to give up whatever case he has.
I heard a strange rumor that the original loan note holders still have a hope of getting back in. These would be the investors who funded the loan put together by Silverton Bank Specialty Finance in Atlanta, before it was dissolved by the FDIC. It doesn’t completely make sense, because Specialty’s specialty was putting smaller banks together to fund mid-sized notes on hotel projects, just like this one. So the investors would be those small banks, or their owners and investors. Who knows. Supposedly they have a tough lawyer in Richmond, but it all sounds dubious.
I always figured Silverton Bank, a bank without customers, for a glorified boiler room operation. They made all their vig on the deal. I’m really speculating, but I’ve written before about how they were accused of gangster tactics on a similar hotel deal in Milwaukee. Silverton demanded the local developer put in more of his own money when the cost of the project went up, but they phrased the demand in violent terms. He paid up and project went belly up anyway, as did the bank. So Halsey was smart to stop paying, but the rest of his defense sounds amateur. The scenario was everybody falling off a cliff, or sending machines out over the cliff, and trying to get paid as long as possible – I am thinking of the guys in the boiler room in Atlanta, on salary.
Latest on the unfinished hotel on Water Street… in Milwaukee:
The contractors got an unusually favorable ruling to finally get paid some day. A difference is that the project is in receivership and not foreclosed, for what it’s worth. Those non-bank investors mentioned on page 2 are the ones Silverton recruited to the deal. So it is possible our Water Street project has sundry investors with the mad Richmond lawyer.
At least theirs has Qdoba in the one finished part.
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