LC Hotel Group gets extension, but with stringent requirements - KPLC 7 News, Lake Charles, Louisiana

LC Hotel Group gets extension, but with stringent requirements

By Lee Peck - bio | email

LAKE CHARLES, LA (KPLC) - Lake Charles Mayor Randy Roach did his best to convince the city council why they should allow the Lake Charles Hotel Group to have more time to secure funding for a four-story hotel at downtown's most attractive property.

"This is an opportunity that we have it's not an 'if' it's a true opportunity and I think it's worthy of our consideration," said Mayor Roach. "This is not an indefinite extension of time."

Financing was a problem two months ago. The group is now asking for their second extension. They say they'll be able to secure the money through stimulus bonds. Bond counselor Jay Delafield says hotel projects with public funds are the single most difficult to finance - second only to golf courses.

"This is a complex transaction, it has a lot of moving parts, it requires a lot of public approval, requires lots of public oversight," said Delafield.  

To get the money, the Lake Charles Hotel Group must get the approval of several boards: including the Public Trust Authority, Calcasieu Parish Police Jury and the Bond Commission. One of the most stringent requirements - proof they have the credit to fund the project: 60% debt to 40% equity.

Their timeline a series of public meetings:

February 10th: Approval of the Public Trust Authority

March 18th: Bond Commission for Preliminary Approval

- The Public Trust Authority will then have a public forum for anyone who opposes the project being financed by public funds.

April 22nd: Goes before Calcasieu Parish Police Jury

May 20th: Final approval by Bond Commission

"If at any point in this time this process, someone at a public agency stops the process, the deal that you guys have with these developers is dead at that point," explained Delafield.  

Some are concerned more delays will keep the property off the market for others who are interested. 

"If somebody comes along and says I want to develop this property, I hate to say well, we've got a shot in the dark - that's holding you back," said Councilman Marshall Simien.  

But the council was also reminded that the Lake Charles Hotel Group acted in good faith - not only extending the city's requested deadlines due to environmental concerns, but helped pay for the cleanup. They say it's only fair to give them one last chance.

"By executing this extension, we are saying as long as you meet this timeline, and as long as you get these approvals to secure this financing, then we will sell the property as we originally contracted to do," said Mayor Roach.  

So let the clock begin, the council approves the extension under the above requirements.

Just a note: both the old Hilton Hotel and the new Holiday Inn on Lake Street were financed through this process. 

Copyright 2009 KPLC. All rights reserved.

  • More Local NewsNewsMore>>

  • TRAFFIC UPDATE: All lanes open on I-10 WB at U.S. 171

    Thursday, August 17 2017 9:17 AM EDT2017-08-17 13:17:46 GMT
    Accident on I-10 westbound at U.S. 171 (Source: KPLC)Accident on I-10 westbound at U.S. 171 (Source: KPLC)

    The left lane of I-10 westbound at U.S. 171 is blocked due to an accident. Traffic is backed up by I-10/I-210 split. If possible, please find alternate routes. Copyright 2017 KPLC. All rights reserved.

    More >>

    The left lane of I-10 westbound at U.S. 171 is blocked due to an accident. Traffic is backed up by I-10/I-210 split. If possible, please find alternate routes. Copyright 2017 KPLC. All rights reserved.

    More >>
  • Doll maker donates her work to Oasis Women's Shelter

    Doll maker donates her work to Oasis Women's Shelter

    Thursday, August 17 2017 8:17 AM EDT2017-08-17 12:17:10 GMT

    Children staying at the Oasis Women's Shelter will be getting a gift from a former Sweetlake resident in the coming days. Jeanne LaVergne is putting the final touches on some 50 dolls she's made at her new home at Tower Oaks Apartments. The 75-year-old Sweetlake native wanted to do something for children at the local women's shelter. "When my husband died in September of 2015, his check was cut off and I didn't have financial help," said LaVergne. She didn't know how she w...

    More >>

    Children staying at the Oasis Women's Shelter will be getting a gift from a former Sweetlake resident in the coming days. Jeanne LaVergne is putting the final touches on some 50 dolls she's made at her new home at Tower Oaks Apartments. The 75-year-old Sweetlake native wanted to do something for children at the local women's shelter. "When my husband died in September of 2015, his check was cut off and I didn't have financial help," said LaVergne. She didn't know how she w...

    More >>
  • Elvis music collector remembers the day he died 40 years ago

    Elvis music collector remembers the day he died 40 years ago

    Thursday, August 17 2017 8:14 AM EDT2017-08-17 12:14:44 GMT

    It may not be the largest collection of Elvis recordings in the world, but it's certainly one Gary Doucet is proud of. 

    More >>

    It may not be the largest collection of Elvis recordings in the world, but it's certainly one Gary Doucet is proud of. 

    More >>
Powered by Frankly